Visa today said it has agreed to buy Swedish open banking platform Tink in a deal worth €1.8bn (£1.5bn).
Tink, which was founded in 2012, enables financial institutions and fintech firms to develop financial products and services through access to data.
The company is partnered with 3,400 banks and financial institutions, reaching millions of customers across Europe.
Visa said it will pay €1.8bn for Tink, inclusive of cash and retention incentives. It added that the deal would be funded through cash on hand and the deal would have no impact on its previously announced stock buyback programme or dividend.
It comes after the financial services giant called off its $5.3bn merger with fintech firm Plaid in January in the wake of a US antitrust lawsuit.
Visa said the merger with Tink would accelerate the adoption of open banking in Europe, giving consumers greater control of their finances and granting businesses more tools for creating financial products.
“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, chief executive 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.”
Tink will retain its brand and current management team following the deal, while its headquarters will remain in Stockholm.
“Visa’s acquisition of Tink is fantastic recognition of just how powerful the tools are that Daniel, Frederik and their team have built,” said Josh Bell, general partner at Dawn Capital, an investor in Tink.
“They’ve helped change the financial industry for the better, leading Tink to become the trusted open banking provider to more than 300 top-tier banks, payments giants and fast-scaling fintechs, enabling 250 million banking customers across Europe to gain greater insight and control over their finances.”