Visa has agreed to acquire Sweden’s Tink, an open banking platform company that enables financial institutions, fintechs and merchants to build tailored financial management services for European consumers and businesses based on their financial data.
Visa will pay total of €1.8 billion, inclusive of cash and retention incentives.
European Union law – the revised Payment Services Directive (PSD2) – mandates that banks enable access to registered third-party providers on behalf of, and with the consent of, their customers.
Tink is one of the over 440 third party providers across Europe that provides open banking services.
“Through a single API, Tink allows its customers to access aggregated financial data, use smart financial services such as risk insights and account verification and build personal finance management tools,” said Visa.
“Tink is integrated with more than 3,400 banks and financial institutions, reaching millions of bank customers across Europe.
“Tink will retain its brand and current management team, and its headquarters will remain in Stockholm, Sweden.
“The combination of Visa’s proven infrastructure and sustained investment in resilience, cybersecurity and fraud prevention with Tink’s APIs, technology and customer relationships is expected to help accelerate the adoption of open banking in Europe by ensuring a secure, reliable platform for innovation.
“As a result, consumers can better control their financial experiences, including managing their money, financial data and financial goals.
“At the same time, businesses large and small will have a greater and more customized range of tools to operate digitally and securely, whether reconciling bank statements and accounts or enabling alternative financing.”
Visa Europe CEO Charlotte Hogg said: “This acquisition is a sign of our commitment to Europe.
“In Tink, we have found a strong partner with whom we can accelerate innovation in open banking for the benefit of our collective clients and the citizens of the U.K. and the E.U., while investing in high-skill tech jobs on the continent.”
Tink CEO and co-founder Daniel Kjellén said: “For the past ten years we have worked relentlessly to build Tink into a leading open banking platform in Europe, and we are incredibly proud of what the whole team at Tink has created together.
“We have built something incredible and at the same time we have only scratched the surface.
“Joining Visa, we will be able to move faster and reach further than ever before.
“Visa is the perfect partner for the next stage of Tink’s journey, and we are incredibly excited about what this will bring to our employees, customers and for the future of financial services.”