Visa buys Swedish fintech Tink for $ 2.2 billion

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LONDON, June 24th (Reuters)Visa Inc VN said Thursday it agreed to acquire European open banking platform Tink valued at 1.8 billion euros ($ 2.2 billion) months after it abandoned a proposed acquisition of the startup’s U.S. rival Plaid .

Sweden-based Tink was founded in 2012 and makes it easier for banks and other financial companies to access financial information from consumers. It is used by more than 3,400 banks and other institutions and over 250 million customers across Europe.

Visa had to cancel a planned $ 5.3 billion deal with US data exchange platform Plaid in January after a US government lawsuit aimed at blocking the deal for antitrust reasons.

Visa said the Tink deal is subject to regulatory approvals.

The European Union’s rules on open banking, which Great Britain also enacted before leaving the bloc, require banks to allow registered third-party providers access to customer data in order to strengthen competition.

The introduction of the rules has prepared fertile ground for fintechs like Tink, who provide technologies to make it easier for third parties and banks to access customer data.

Visa would keep Tink’s brand and management team, and its headquarters would remain in Stockholm, the company said.

The Tink acquisition included cash and retention incentives, Visa said, adding that the transaction will have no impact on the previously announced share buyback or dividend policy.

(Reporting by Kanishka Singh in Bengaluru and Iain Withers in London; Editing by Edmund Blair and Barbara Lewis)

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