Visa has signed a definitive agreement to acquire Currencycloud, a cross-border cash transfer company, valuing the deal at £700m, or $950m, including cash and retention incentives.
Both companies were already in a strategic partnership prior to the recently announced acquisition.
Currencycloud is also a partner of RippleNet, which means it uses Ripple-made conversion tools to facilitate cross-border transactions.
Colin Ostrovsky, Global Treasurer, Visa, said:
The Currencycloud acquisition is another example of Visa expanding and building a strategic network to facilitate global money movement.
Consumers and businesses increasingly expect transparency, speed, and simplicity when making or receiving international payments.
With our acquisition of Currencycloud, we can support our customers and partners to reduce cross-border payments vulnerabilities and develop great user experiences for their customers.
Currencycloud will help Visa strengthen its foreign exchange capabilities and also help it expand its cross-border remittance footprint.
Mike Lavigne, CEO of Currencycloud, said:
At Currencycloud, we have always strived to offer a better tomorrow for everyone, from the smallest start-up to global multinational corporations.
Reimagining how money flows around the global economy just got even more exciting with our joining Visa.
Acquisition of Currencycloud to help Visa achieve its Fintech goals:
Visa recently revealed that cryptocurrency transactions on its card network exceeded $1 billion in the first half of 2021.
Visa also revealed its plans to aggressively expand crypto payment plans and make crypto one of the best forms of currency used for transfers.
The payments processing giant is building a ‘fintech’ digital economy network with a focus on crypto transactions and the use of digital currencies.
What is the impact of the news on the price of the digital currency XRP:
The recent acquisition of Currencycloud fits with Visa’s plan to improve remittance services and focus more on cryptocurrencies.
It is mentioned in the statement of the acquisition of “Currencycloud” that the latter uses one of Ripple’s services and products, which is RippleNet, which in turn uses the XRP currency in settlement and transfers funds quickly and with lower fees.
But the details are not yet clear, and the price of XRP is not affected by the news and is still trading in its range between $0.57 and $0.60.