US-based fintech firm Plaid, which connects bank accounts with fintech apps, has received strategic investments from Visa and Mastercard.
Both the payment majors participated in its $250m Series C investment round in December last year. The Series C investment offered the company a $2.65bn valuation.
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However, Plaid did not disclose the amount of investment made by the two companies.
In a blog post, Plaid CEO and co-founder Zach Perret said: “Today, we are excited to announce that Mastercard and Visa have made strategic investments in Plaid.
“We have long been inspired by the work these networks did to digitise commerce, and hold this as an example for what we hope to accomplish in financial services.
“We look forward to collaborating on products that lie at the intersection of commerce and financial services.”
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By GlobalDataEstablished in 2013, Plaid raised a total of $310m. The company focuses on developing the technical infrastructure APIs to connect banks and fintechs.
The technology enables fintech apps to sync with users’ bank accounts. It also allows fintechs to track and authenticate customer accounts, while providing the customers with the opportunity to access their bank accounts through third-party apps.
Plaid’s interface supports several apps including Venmo, Citigroup, Coinbase, American Express and Fannie Mae.
Currently, the fintech firm is working on a consumer-first financial ecosystem to help people in improving their financial management.
