Visa Inc has agreed to buy privately held financial technology startup Plaid Inc in a $5.3-billion (4.1 billion pounds) deal, the payments processor said on Monday.
Visa and rival Mastercard Inc had invested in Plaid in a $250 million series C funding round in 2018 that reportedly valued the firm at $2.65 billion.
Plaid, whose technology lets people link their bank accounts to mobile apps like Venmo, was founded in 2013 and currently connects with over 11,000 financial institutions across the US, Canada and Europe.
Visa expects the deal to close in the next three to six months and benefit its adjusted earnings per share at the end of the third year.
The news was first reported by the Wall Street Journal.Visa said it will fund the deal using cash on hand as well as debt.