Card giant firm, Visa is set to acquire Tink, the Swedish open banking platform, in a deal worth €1.8 billion (roughly $2.15 billion).
The news comes less than six months after the termination of Visa’s planned $5.3 billion acquisition of Plaid, the San Francisco-based fintech firm – a deal that had encountered significant opposition from the U.S. Department of Justice.
Like Plaid, Tink’s platform allows customers to connect with more than 3,400 banks and financial institutions to access aggregated financial data, helping them to build innovative personal finance tools.
“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, CEO 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.”
As part of the Visa deal, Tink will retain its brand and current management team, as well as its headquarters in Stockholm, Sweden.
Tink last raised money in December 2020, when it secured €85 million (roughly $101.5 million) in a round led by Dawn Capital and Eurazeo Growth.
The €1.8 billion transactions, which includes cash and retention incentives, are subject to approval from regulators. Visa will fund the transaction in cash.
Tink’s business model is in part enabled by the EU’s Revised Payment Services Directive (PSD2), which was put into effect in January 2018. The legislation requires banks to give third parties access to the customer data they store, with the aim of driving competition and innovation in financial services.
But the PSD2 framework also paved the way for new payment functionality that allows consumers to make payments directly from their bank accounts without having to rely on intermediaries, like card networks.
In recent months, account-to-account payments have garnered a lot of attention from crypto startups, which see it as a potentially cheaper and easier method of funding wallets.
Contactless Card Transaction Values to Reach $2.5 Trillion in 2021, Dominating the Contactless Landscape
A new report from Juniper Research has found that global contactless card transaction values will reach $2.5 trillion in 2021, from $1.7 trillion in 2020, with cards retaining the majority share of overall contactless transaction values at 79% in 2021. The pandemic has significantly accelerated an existing contactless card usage trend, and these value increases will be sustained beyond 2021 and into the future.
The new research, Contactless Payments: Trends, Opportunities and Market Forecasts 2021-2026, found that the combination of accelerated card issuance and usage during the pandemic with a series of global transaction limit increases have unlocked significant growth potential for contactless payments, fundamentally changing the payments paradigm.
Significant Growth in Previously Underdeveloped Markets
The report identified that market growth has already been catalysed by increased contactless card use in previously underdeveloped markets such as the US and Germany, and that this shift will be permanent. The US will see transaction value growth of 136% between 2020 and 2021, with major US retailers rolling out contactless acceptance and consumers enjoying the added convenience offered by touch-free card payments. Consequently, the US is anticipated to see further growth of almost 300% over the next five years.
Research author Susannah Hampton added: ‘Markets such as Germany have seen an unprecedented shift towards contactless cards in the past 18 months. This shift has severely diminished the role of cash and created significant opportunities for card issuers to gain market share.’
The Opportunity for Biometric Cards
The research identified that recent pandemic-driven contactless transaction limit increases have provided opportunities for biometric payment cards to tap into the trend towards secure, convenient, and hygienic payments. Although still niche, biometric cards are set to see more extensive pilot schemes and wider deployments; offering an increased value proposition and presenting a way for banks and issuers to provide an innovative offering and differentiate themselves from the competition.
Cellulant Gets Approval from Bank of Tanzania to Become a Payment Solution Service Provider (PSSP)
The Bank of Tanzania (BOT) has issued an approval in principle to Cellulant Corporation to operate as a Payment Solution Service Provider in Tanzania having satisfied all the necessary requirements.
Payment Solution Service Providers make up the underlying e-Payment infrastructure in Tanzania. Banks, Online Merchants, payment processors, merchants, state governments, and consumers connect to PSSPs to meet their digital payment needs.
This approval makes Cellulant one of the top Payment Solution Service Providers (PSSP) in Tanzania endorsed by the BOT to provide digital payments solutions across the nation.
Cellulant is a leading Pan-African financial technology company providing a one-stop digital payments platform. Cellulant uses technology to connect people and their resources, making it easier to do business across Africa.
Edwin Kiiru, recently appointed Country Manager for Cellulant Tanzania, stated that this approval will enable the company to extend its payment solutions across all spectrums of Tanzania’s payments ecosystem.
Cellulant provides a single digital payments platform – named Tingg- addressing the complex payments needs of businesses. Tingg makes it easy to collect and make payments across multiple payment methods in different currencies, with the best customer experience for any business looking to digitise their payments.
‘‘Cellulant is a critical component of Africa’s Payments ecosystem and a key actor in delivering seamless payments solutions. This approval sets Cellulant into a select group of few payment aggregators that operate as PSSPs in Tanzania and will help add millions of economically active but financially excluded Tanzanians into the digital payment ecosystem. We are bringing to Tanzania the same top-level performance and seamless payments solutions that have made Tingg, Africa’s most preferred payments platform,” added Mr Kiiru.
Founded in 2002, Cellulant provides a single digital payments platform that runs an ecosystem of consumers, retailers, merchants, banks, mobile network operators, Governments, and International Development Partners. Today, Cellulant’s payments platform hosts 154 payment options across 34 countries; and is connected to 220M consumers on a single inclusive network allowing for interoperability that has eluded numerous players in the payments space.
Cellulant has an office presence in 18 African countries.
VISA Changes Brand Identity to Meet Broder Financial Services
Seven years after its last brand refresh, Visa, the global finance giant, is changing again. This time, its new identity, “Meet Visa”, is a nod to the company’s evolution from a cards issuer to much broader financial services and tech platform.
Developed by Visa’s global creative agency of record, Wieden & Kennedy, the refresh lands with a short film directed by Malik Hassan Sayeed, which invites the world to meet a network working for everyone.
Complementing this introductory film is a series of shorter digital films and photographic elements that showcase the breadth of the Visa network. Visa also worked with photographer Camilla Falquez and Argentinian directing team Pantera & Co – Brian Kazez, Pato Martinez and Francisco Canton – on the campaign.
The brand overhaul focuses on the areas of trust, security, acceptance and inclusion, and the firm has worked to build a new visual identity with brand design firm Mucho. The “Meet Visa” campaign shares a glimpse into the evolved visual brand identity launching later this year, featuring refreshed colours for digital impact, a custom font and an updated brand symbol.
Over the course of 2021, Visa’s new brand identity will become visible across the 200-plus countries and territories in which the company operates. In APAC, the identity will launch first in Singapore, Japan, Australia, New Zealand and India before rolling out beyond. APAC marketing chief Danielle Jin told Campaign Asia-Pacific that the campaign will roll out in 18 markets worldwide by the end of the week and 40 markets by the end of the year.
“Our business has become more expansive and includes categories such as B2B payments, crypto, fintech and P2P payments,” she said. “We wanted to make sure we evolve our brands with our business.”
The campaign will be run across film, TV, digital and OOH.
“People think they ‘know’ Visa,” said Lynne Biggar, executive vice-president and global chief marketing officer. “Consumers and businesses trust the power of those four letters and see it when they open their wallet, pay a vendor, walk into a store or check out online. What they don’t see is how those four letters operate the most dynamic network of people, partnerships and products.”
Visa said its network connects 3.6 billion credentials, more than 70 million merchant locations and tens of thousands of partners while powering more than $11tn in total volume annually.
“We don’t regard ourselves as a credit card company, we are a technology payments firm,” Jin contended. Over the last five years alone, Visa has also invested $9bn in its technology backbone.
“We are capturing the bold ambition of Visa with this brand evolution as a way to express what we stand for and what we strive for,” added Biggar. “With the world reopening and with money increasingly moving in new ways, there’s no better time to showcase the work we do and the impact a purpose-driven brand with Visa’s scale can have to enable individuals, businesses and economies to thrive.”
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