A major deal has been confirmed, as Visa signed a definitive agreement to acquire Tink, a European open banking platform that enables financial institutions, fintechs and merchants to build tailored financial management tools, products and services in Europe.
As part of the deal, Visa will pay total financial consideration of 1.8 billion Euros, inclusive of cash and retention incentives, to acquire Tink.
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.
Daniel Kjellén, CEO and Co-founder of Tink, commented on the development: “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.”
Underlining the significance of the deal for Visa, Tink is already integrated with more than 3,400 banks and financial institutions, reaching millions of bank customers across Europe.
The acquisition means that 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,” said 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.”
Charlotte Hogg, CEO of Visa Europe, added, “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.”
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. As a result, innovators of all kinds – ranging from financial institutions, fintechs, developers, platform players and merchants – are increasingly leveraging open banking solutions to empower consumers with more choice in how and where they share their financial data. Tink is one of the over 440 third party providers across Europe that provides open banking services.
The transaction is subject to regulatory approvals and other customary closing conditions. Visa will fund the transaction from cash on hand and this transaction will have no impact on Visa’s previously announced stock buyback program or dividend policy.