Just out of Yesterday’s news that Visa is buying Fintech Unicorn Plaid for $ 5.3 billion, the payment giant is presenting its case to its shareholders. Given the scale of the agreement and the implicit commitment that Visa In the future of its market, the company prepared a presentation, which means that we can analyze its thinking about Plaid and the fintech market as a whole.
In a short deck, Visa argues that buying Plaid : 1) it will provide you with deep access to an expanding market (financial technology), 2) it will help you drive growth (with a small impact on earnings) and 3) it will provide you with a means to expand the total addressable Visa market building on Plaid’s small customer base, allowing future growth.
Access to new markets, faster revenue expansion and a larger total addressable market (TAM) are pretty good things for any business. Let’s see how Visa presents your case.
In Visa’s opinion, fintech World growth is “very high.” The credit card and payment company informs shareholders in its presentation that the adoption of fintech (the percentage of “customers with Internet access using at least 1 fintech application”) is growing at a compound rate of 43%. Visa also highlights the amount of capital that goes into space, that is, $ 120 billion in the last five years.