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Visa to acquire Tink for €1.8 billion

Visa to acquire Tink for €1.8 billion

Visa is to acquire European Open Banking platform Tink for €1.8 billion, filling a Plaid-shaped hole in its portfolio after a $5.4 billion deal to acquire the US data sharing outfit was scapped following pushback from regulators.

Tink connects to more than 3,400 banks that reach over 250 million bank customers across Europe. Founded in 2012 in Stockholm, the company's 400 employees serve more than 300 banks and fintechs in 18 European markets, out of offices in 13 countries.

Under the agreement with Visa, Tink will retain its brand and current management team, and its headquarters will remain in Stockholm, Sweden.

“Visa is committed to doing all we can to foster innovation and empower consumers in support of Europe’s open banking goals,” says Al Kelly, CEO and Chairman of Visa. “By bringing together Visa’s network of networks and Tink’s open banking capabilities we will deliver increased value to European consumers and businesses with tools to make their financial lives more simple, reliable and secure.”

The transaction is subject to regulatory approvals and other customary closing conditions.

The deal marks the second major acquisition of a Swedish fintech by a US giant following PayPal's $2.2 billion buy out of Square rival iZettle in 2018.

European venture fund Dawn Capital is an investor in Tink and was also an investor in iZettle.

John Bell, general partners at Dawn Capital states: “With Tink and iZettle, Sweden has now produced two of Europe's largest ever fintech M&A exits, reflecting the world-class innovation, commercial excellence and entrepreneurial talent we have found across the Nordic market. As the only investor in both companies, we are delighted to have supported their successful journeys to new homes within corporations with global reach, validating the relevance of the B2B tech coming out of Europe. We wish Tink continuing success in the next chapter of its journey.”

Comments: (3)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 25 June, 2021, 13:16Be the first to give this comment the thumbs up 0 likes

A light brush regulator blocked the Visa-Plaid deal in USA. Wonder what are the chances of the arguably more heavy brush regulator approving the Visa-Tink deal in EU. 

On a side note, given that Tink "connects to more than 3,400 banks", how come it's serving only "300 banks"? 

A Finextra member
A Finextra member 28 June, 2021, 06:50Be the first to give this comment the thumbs up 0 likes

Hope that Visa will make Tink follow the PSD2 regulations on payment account access. Tink is one of the "screen scraper" players that attempt to download more info from the customer bank relation that is permitted according to the payment services directive  which allows payment account data to be accessed on customer consent.  Customers do not always understand that screen scraping exposes their entire bank relation since ithere are no limitations on what the screen scraper can do when logged in with the customer credentials. 

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 28 June, 2021, 10:50Be the first to give this comment the thumbs up 0 likes

LOL I expect exactly the opposite.

While other aggregators in USA were focusing on best practices like token-based account authentication and API-based data access, Plaid uses phishing to harvest credentials and scraping to gather data, a strategy that helped it grow more rapidly and steal a march over its rivals. Given Visa's love for Plaid, I'm guessing it showed interest in Tink because Tink uses scraping. We all know the problems with scraping but that hasn't stopped the scrappy technology from being the driver of success of many aggregation companies so far. 

In any case, AFAIK, PSD2 does not forbid scraping.

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