Visa Inc revealed on Thursday that it has agreed to purchase the European open banking platform Tink for 1.8 billion euros. The decision to acquire the Swedish fintech startup comes just months after Visa scrapped its plans to purchase Tink’s U.S. rival Plaid.
Visa’s $5.3 billion deal Plaid had to be scrapped due to a U.S. government lawsuit that aimed to disrupt the deal on antitrust grounds. According to Visa, the company decided to abandon the deal, stating that it was pending subject to regulatory approvals.
Following the confirmation of the Tink deal, Visa stated that it would be retaining Tink’s current brand and management team. Furthermore, its headquarters would remain in the Swedish capital of Stockholm.
Founded in 2012, Tink specializes in enabling banks and other financial services institutions to access customer data more readily. Currently, Tink’s customer base consists of 3,400 banks and 250 million customers across Europe.
European Union rules to open banking, as well as those of the UK, require banks to allow access of customer data to third-party providers in an effort to boost competition. Such regulations have provided a lucrative market gap to Tink, which the Swedish fintech firm has effectively penetrated.
