Visa, the payment processing giant has signed a definitive agreement to acquire cross-border remittance provider Currencycloud, the deal is valued at £700 million or $950 million inclusive of cash and retention incentives. Both the companies were already in a strategic partnership before the acquisition.
Currencycloud is also a RippleNet partner which means it uses Ripple-made remittance tools to facilitate cross-border transactions.
“The acquisition of Currencycloud is another example of Visa executing on our network of networks strategy to facilitate global money movement,” said Collen Ostrowski, Visa’s Global Treasurer. “Consumers and businesses increasingly expect transparency, speed, and simplicity when making or receiving international payments. With our acquisition of Currencycloud, we can support our clients and partners to further reduce the pain points of cross-border payments and develop great user experiences for their customers.”
Currencycloud would help Visa strengthen its foreign exchange capabilities and help the payment giant expand its cross-border remittance footprint.
“At Currencycloud, we’ve always strived to deliver a better tomorrow for all, from the smallest start-up to the global multi-nationals. Re-imagining how money flows around the global economy just got more exciting as we join Visa,” said Mike Laven, Chief Executive Officer, Currencycloud.
Currencycloud Acquisition to help Visa realize its Fintech goals
Visa had recently revealed that crypto transactions on its card network have exceeded 1 billion dollars in the first half of 2021. The company also revealed its plans of aggressively expanding its crypto payment plans and making crypto one of the top forms of currency in use. The payment processing giant is building a fintech network with a focus on crypto transactions and digital assets use.
The recent acquisition of currencycloud fits well within Visa’s plan of improving its remittance services and focus more on digital assets.
Both Visa and Mastercard who until a year ago blocked crypto-related transactions now see cryptocurrencies as the future of payments. Recently, Mastercard announced it would enhance its crypto card services to enable banks and crypto companies to issue more crypto cards and remove the hurdle of crypto to fiat conversion through stablecoin use.