California-based multinational fintech company Visa, announced today that it has signed a definitive agreement to acquire London-based Currencycloud, a company that specialises in a cloud-based platform for B2B cross-border payments.
According to a statement, the acquisition gives Currencycloud a valuation of £700M (approx €815.88M), inclusive of cash and retention incentives. The financial consideration will be reduced by the outstanding equity of Currencycloud that Visa already owns.
Cross-border and multi-currency payment infrastructure
Currencycloud’s cloud-based platform enables banks and financial service providers to offer currency exchange services, including; real-time notifications on foreign exchange transactions, multi-currency wallets, and virtual account management.
The company gives Banks, fintechs and businesses, the capability to move money across borders and transact globally in multiple currencies. Their technology makes it easy for their clients to embrace digital wallets, and to embed finance into the core of their business – no matter what industry they’re in.
Founded in 2012 by Mike Laven, Nigel Verdon, Richard Arundel, and Stephen Lemon, the platform supports nearly 500 banking and technology clients. Since its inception, Currencycloud claims to have processed more than $100B in 180 countries working with banks, financial institutions, and fintechs around the world, including Starling Bank, Revolut, Penta, and Lunar.
Based in London with offices in Amsterdam, New York, Cardiff, and Singapore, Currencycloud works with partners including Visa, Dwolla, GPS and Mambu. They are regulated in the UK, Canada, the US, and the EU.
How will Currencycloud benefit Visa?
Currently, cross-border payments have witnessed a huge uprise due to demand from businesses to engage in international trade. Hence, with this acquisition, Visa plans to strengthen its existing foreign exchange offerings and to better serve financial institutions, fintechs, and partners while enabling new use cases and payment flows.
According to a statement, a recent study revealed that 43 per cent of all small businesses conducted international trade in 2020. The addition of Currencycloud’s capabilities to Visa’s network will widen access to international payment products that help businesses meet their cross-border needs. Currencycloud will accelerate flexible, digital-first, international payment services to consumers and businesses globally.
Speaking on the development, Colleen Ostrowski, Visa’s Global Treasurer, says, “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. 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 will continue its operations from its headquarters in London and will retain its current management team.
Visa is a financial services company that facilitates electronic payment systems globally. “Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second,” the company said in a statement.
Visa’s global payment brands include Visa, Visa Electron, PLUS, and Interlink. Together they provide payment options through credit, debit, prepaid, and commercial programs. Its global network, VisaNet, delivers value-added processing services such as fraud and risk management, dispute resolution, rewards, and other business-enhancing applications.