Tech

Visa acquires Currencycloud, which makes API for remittances and currency transfers, in $ 963 million deal

A year and a half later Currencycloud high $ 80 million in a round that included Visa, the London-based API developer powering remittance and currency exchange services is getting even closer to the financial services giant. Today, Visa announced that it would acquire CurrencyCloud in a deal valued at $ 963 million (£ 700 million).

This price is a very decent jump from the last funding round, when sources told us that the startup was valued at around $ 500 million.

(Since Visa already has equity in the company, the amount it will actually pay will be reduced by that amount.)

CurrencyCloud has some 500 clients in 180 countries who use its APIs to power multi-currency portfolios, currency exchange services, and account management, including some of the biggest startups like Monzo, Moneze, Starling, Revolut, and Dwolla. These will continue, and on top of that, Visa will use the startup’s technology to bolster its own currency exchange rails and provide a broader set of services to its own clients, including financial institutions, fintechs, and more, as well as to build New services. also for consumers.

“At Currencycloud, we have always strived to deliver a better tomorrow for everyone, from the smallest start-ups to global multinationals. Reimagining how money flows in the global economy became more exciting as we joined Visa, “said Mike Laven, CEO of Currencycloud, in a statement. “The combination of Currencycloud’s financial technology expertise and the Visa network will allow us to deliver greater customer value to businesses that transfer money across borders.”

Remittances and currency transfers will become big business in the financial services world, and that opportunity is growing. Two of the factors driving this are that e-commerce has spread far beyond our national borders, especially in the last 18 months, as have supply chains. (Visa notes that about 43% of all small businesses globally conducted some form of international trade in 2020.) And with the rise of cloud-based mobile services to facilitate transactions, consumers are also increasingly globalized in their prospects.

At the same time, remittances and currency transfers are two areas ripe for disruption, with established services often costly and inefficient. All of this sets the stage for a company like CurrencyCloud, which has created a new currency transfer implementation that can be integrated into other financial services to help them run smoothly.

Exit is also a classic example of how traditional financial big powers tend to have a harder time innovating and launching new services, turning to smaller, more agile startups that are making big bets on technology and succeeding to help. propel yourself into the next generation of financial services. Whether Visa will be able to successfully integrate and use CurrencyCloud technology and work with its team are two things that have already been proven: the two were strategic partners prior to this deal.

“The acquisition of Currencycloud is another example of Visa’s execution of our network of networks strategy to facilitate the global movement of money,” he said. Colleen Ostrowski, Visa Global Treasurer, in a statement. “Consumers and businesses increasingly expect transparency, speed and simplicity when making or receiving international payments. With our acquisition of Currencycloud, we can help our customers and partners further reduce pain points in cross-border payments and develop great user experiences for their customers. “

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