Visa Inc. announced it has signed a definitive agreement to acquire Currencycloud, a global platform that enables banks and fintechs to provide innovative foreign exchange solutions for cross-border payments. The deal is valued at $963 million (£700 million).
The acquisition builds on an existing strategic partnership between the two companies. The financial consideration will be reduced by the outstanding equity of Currencycloud that Visa already owns.
Currencycloud’s cloud-based platform offers a broad set of APIs enabling banks and financial services providers to offer currency exchange services, including real-time notifications on foreign exchange transactions, multi-currency wallets, and virtual account management. The Currencycloud platform supports nearly 500 banking and technology clients with reach in over 180 countries.
Currencycloud is expected to strengthen Visa’s existing foreign exchange capabilities by extending them to better serve financial institutions, fintechs and partners while enabling new use cases and payment flows.
Cross-border payments have seen significant growth due to rising demand from businesses of all sizes to engage in international trade. A recent study revealed that 43% of all small businesses conducted international trade in 2020.