Visa claimed Thursday it experienced agreed to get Swedish fintech startup Tink for $ billion in a transfer to get a chunk of Europe’s rapid-growing open up banking industry.

Underneath European legislation, financial institutions need to provide third-get together companies with obtain to consumer data if the buyers have consented. This has made an option for businesses these as Tink, which presents technologies so financial institutions can obtain aggregated financial data, initiate payments, confirm account possession, and construct personal-finance management equipment.

According to Visa, Tink is now integrated with extra than 3,four hundred financial institutions and financial institutions, reaching tens of millions of lender buyers across Europe.

Visa’s acquisition of the Swedish company comes 5 months just after it abandoned its bid to obtain Plaid, an American rival of Vink, for $5.3 billion amid opposition from U.S. regulators.

“Visa is fully commited to carrying out all we can to foster innovation and empower individuals in assist of Europe’s open up banking goals,” Visa CEO Al Kelly claimed in a news release. “By bringing together Visa’s network of networks and Tink’s open up banking capabilities, we will deliver elevated price to European individuals and companies with equipment to make their financial life extra basic, dependable, and protected.”

As The Wall Road Journal reviews, “Widespread adoption of open up banking has the prospective to create an substitute to the debit- and credit score-card networks that dominate the payments world.”

“These open up banking initiatives are gaining maturity and momentum pretty quickly, and they are going to grow to be a true substitute to the card infrastructure and the card networks,” claimed Hiroki Takeuchi, the founder of London-dependent startup GoCardless Ltd.

Tink was launched by Swedish business people Daniel Kjellén and Fredrik Hedberg in 2012, originally providing a financial management app but later on focusing on furnishing its technologies to other companies.

The corporation was past privately valued at 680 million euros and has raised extra than $300 million from buyers, which include PayPal, SEB, and ABN AMRO.

“Joining Visa, we will be in a position to transfer quicker and get to further than at any time prior to. Visa is the perfect partner for the subsequent stage of Tink’s journey,” Kjellén claimed.

Al Kelly, FinTech, open up banking, startup, Tink, Visa