Visa Finalizes Deal To Acquire Cross Border Payment Giant

Payment solutions behemoth Visa has disclosed that they have successfully acquired Currencycloud for nearly a billion dollars. The purchase aims to make transactions across borders more efficient and honest. The company, with the move, will make transactions more efficient for both the firms and the customers of these businesses.

Benefits Of The Deal

Visa and Currencycloud had signed an agreement in the summer. The completion of the deal, however, came through now. Currencycloud remains a celebrated payment solution provider for businesses across borders. Having a partnership with RippleNet, they utilize Ripple’s payment solutions. Visa required the firm’s incorporation to produce a technologically robust payment system across borders.

The CEO of Currencycloud, Mike Laven, had stated earlier at the beginning of talks that the company made cross-border transactions more transparent, faster, and more cost-effective. They, by definition, made traditional financial solutions more efficient. SMEs are of particular interest to the firm as they feel that they have not been consistently given the right service by the banks. In addition, the company hoped its services could reach new markets with the Ripple partnership.

Data reveals that the cross-border payment solution already served over 500 institutions with access to markets in over 180 nations. The deal gives Visa, which started its advisory team on cryptocurrencies, to diversify its crypto service access to access an even broader customer base. The payments giant is known for being supportive of cryptocurrency. The deal with Currencycloud is likely to precede more crypto-friendly deals by the company.

Visa’s Perspective On Crypto

Visa’s European Crypto head, Nikola Plecas, had disclosed earlier in December that the company recognized the nascent market’s potential. Furthermore, he disclosed that the crypto space was integral to the company’s growth in the future. Plecas went on to add that the firm will continue giving it focus.

Visa, at the moment, is facing a lot of pressure to reduce its fees and become more efficient. Amazon had announced that they would be dropping the payment option from their platform from next year. The two giants may end up agreeing then, but the statement is cause for a lot of concern.

The move comes as an increasing concern across the board over the increasing cost of card transactions. The increasing fees are proportionately impacting the revenue of online merchants. Questions are now being asked about the relevance of card transactions in today’s world.

The problems range from increased fees problematic for online stores to even high exposure to fraud. The issues even extend to user experience. It is not uncommon for users to have their cards declined multiple times when attempting to buy something. It can lead many to quit buying products after some attempts.

Visa hopes to lead the pack in crypto payments. The company has had nearly $4 billion worth of crypto-related transactions on its platform in a year. However, its exploration of the crypto space might see it address some of the present issues and see the company remain relevant for a long time to come.