Visa announced its acquisition of the London-based fintech firm, Currencycloud. The new development aims to improve Visa’s foreign exchange business and expand them to serve financial institutions, fintech and partners.
On Thursday, Visa announced that it has inked a definitive agreement to buy Currencycloud, a fintech platform that serves around 500 financial and technology clients in over 180 countries.
The new acquisition will help Visa boost its foreign exchange business and broaden its reach to include financial institutions, fintech, and other partners.
The agreement will improve Visa’s payment transparency and speed, according to Colleen Ostrowski, the company’s global treasurer.
“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 deal is based on an existing strategic partnership between the two companies since Visa currently has a $956 million equity position in Currencycloud, which includes cash and retention incentives.
Visa joined investors such as SBI Group, a Japanese financial powerhouse, in an $80-million fundraising round for Currencycloud last year.
Currencycloud will continue to operate from its London headquarters and will retain its present management team, according to the release. Regulatory approval for the deal is still pending.
The acquisition comes after Currencycloud announced a relationship with Ripple, the firm behind the XRP cryptocurrency.
Currencycloud and Ripple announced their partnership in early July, with the goal of exploring new cross-border transaction methods, with a particular focus on nations where restrictions limit prospects for small and mid-sized businesses.
The companies will continue to operate as independent entities until the merger is completed, according to a Visa representative. “Until then, it’s business as usual,” the spokesperson replied.
Visa’s recent acquisition underscores the company’s commitment to digital currency adoption, which includes major cryptocurrencies such as Bitcoin (BTC) and fiat-pegged stablecoins.
Visa granted approval for the issuance of a new Bitcoin debit card in Australia last week.