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Plaid

acquisitionEmbedded FinanceOpen Bankingpaytech
·Jan. 20, 2020

Is Plaid cheap at $5.3 billion for $500 billion Visa?

I dig deeply into the $5.3 billion acquisition of data aggregator Plaid by $500 billion payments network Visa. We examine why this deal is worth 25-50x revenue, while Yodlee's sale to Envestnet was priced much lower. We also look at how Plaid could be an existential threat to Visa, and why paying 1% of marketcap to protect 200 million accounts may be a good bet. Broader implications for product manufacturers across payments, investments, and banking also emerge -- the middle is getting carved out, and infrastructure providers like Visa or BlackRock are moving closer to the consumer.

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FintechNews RoundupUSA
·Jan. 14, 2020

Visa to Buy Plaid in $5.3 Billion Deal

Yesterday it was announced that Visa is planning to buy Plaid for $5.3 billion, double the valuation of Plaid’s 2018...
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artificial intelligenceaugmented realitychatbots & other robots
·Jan. 13, 2020

Have Facebook Messenger Chatbots failed for Finance?

In the long take this week, I try out a contrarian point of view on personal finance chatbots. Trim, a savings chatbot, just withdrew support from Facebook Messenger. While lots of other chatbots are still invested in conversational banking, what could we take away from the counterfactual of chatbots failing to get B2C traction? What is the impact on the rest of the platform wars waged by Amazon, Google, and Tesla for connected homes, cars, and the Internet of Things?

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Embedded FinanceInvestingneobank
·Oct. 28, 2019

Square’s Robinhood competitor and Robinhood’s Square competitor are rented from API providers, delegating billions

I look at two mental models explaining why and how financial APIs have led to the creation of billions in enterprise value. The driving news is that Square Cash is competing with Robinhood in free trading, powered by trading API company DriveWealth. Last week, we saw that Chime, Robinhood, and Monzo were powered by payments API company Galileo. Should these enablers be worth the billion-dollar valuations of their clients? Are APIs inevitable technology progress? Or are we just seeing venture financing spilling desperately into a rebundling play to find profitability?

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FintechNews RoundupUSA
·Jun. 4, 2019

What Plaid Direct Means for Fintech

Last week Plaid announced the launch of Plaid Direct, their new tool that allows both banks and fintech platforms to...
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FintechNews RoundupUSA
·Jan. 15, 2020

Commentary on the Plaid/Visa Deal

The $5.3 billion acquisition of Plaid has created excitement in the fintech community and some believe this is only the...
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News Roundup
·Jan. 14, 2020

Visa to Buy Plaid in $5.3 Billion Deal

Fintech companies continue to attract interest from traditional financial institutions and now we have a significant acquisition to start off...
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FintechNews RoundupUSA
·Jan. 9, 2020

An in Depth Look at Plaid, the Company Powering Most Open Banking Interactions in the US

In the age of open banking, personal information is now being shared across many different institutions; the company powering this...
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FintechNews RoundupUSA
·Jun. 21, 2019

Plaid Announces Investments Product Through Quovo

Plaid acquired competitor Quovo earlier this year and has just announced their first offering through the company, Investments; the new...
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civilization and politicsEmbedded Financepaytechsmall business
·Jun. 3, 2019

$20 Billion TSYS acquisition in the shadow of Alibaba’s $500B SME aggregation

I have been reading Alibaba: The House that Jack Ma Built this week, something everyone interested in understanding the future of Google, Goldman, Uber, or Amazon should do. The narrative starts with China's small business explosion, and Ma's genius is to tap into global demand for the products of those businesses through an online marketplace and associated financial services. But I am getting ahead of myself. Let's pause to acknowledge a massive, systemic transaction that was announced this week: payments processing company Global Payments acquiring TSYS (Total Payments Systems) for $21.5 billion.

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