Visa has signed a definitive agreement to acquire cross border payments platform Currencycloud.

The deal, which builds on an existing strategic partnership between the two companies, values Currencycloud at £700 million, inclusive of cash and retention incentives.

The financial consideration will be reduced by the outstanding equity of Currencycloud that Visa already owns.

Currencycloud’s cloud-based platform offers a broad set of APIs enabling banks and financial services providers to offer currency exchange services, including real-time notifications on foreign exchange transactions, multi-currency wallets, and virtual account management.

Currencycloud’s platform supports nearly 500 banking and technology clients in over 180 countries.

Announcing the move, Visa said Currencycloud would strengthen Visa’s existing foreign exchange capabilities by extending them to better serve financial institutions, FinTechs and partners while enabling new use cases and payment flows.

Cross-border payments have seen significant growth as international trade expands, with a recent study revealing that 43 per cent of all small businesses conducted international trade in 2020.

Colleen Ostrowski, Visa’s global treasurer said: “The acquisition of Currencycloud is another example of Visa executing on our network of networks strategy 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 clients and partners to further reduce the pain points of cross-border payments and develop great user experiences for their customers.”

Under the terms of the deal, Currencycloud will continue their operations from their headquarters in London and will retain their current management team. The transaction is subject to regulatory approvals and other customary closing conditions.

Mike Laven, chief executive of Currencycloud said: “Re-imagining how money flows around the global economy just got more exciting as we join Visa.”

He added:“The combination of Currencycloud’s FinTech expertise and Visa’s network will enable us to deliver greater customer value to the businesses moving money across borders.”

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