Visa to acquire cross-border payments fintech Currencycloud

Visa announced on Thursday that it had signed a definitive agreement to acquire Currencycloud, a fintech platform supporting about 500 banking and technology clients across more than 180 countries.

The new acquisition aims to improve Visa’s foreign exchange business and expand them to serve financial institutions, fintechs and partners. The deal will specifically improve Visa’s payment transparency and speed, the company’s global treasurer Colleen Ostrowski said, stating:

“The acquisition of Currencycloud is another example of Visa executing on our network of networks strategy to facilitate global money movement. Consumers and businesses increasingly expect transparency, speed and simplicity when making or receiving international payments.”

The new acquisition is based on an existing strategic collaboration between the two firms, as Visa already owns an equity stake in Currencycloud, valued at $956 million, including cash and retention incentives. Last year, Visa participated in an $80-million funding round for Currencycloud alongside investors such as Japanese financial conglomerate SBI Group.

Currencycloud will maintain its operations from the company’s headquarters in London and will keep its current management team. The acquisition is still subject to regulatory approval.

The acquisition comes shortly after Currencycloud entered a partnership with Ripple, a major cryptocurrency company behind the XRP token.

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