Why Mastercard Inc (MA) Is Buying Finicity For About $825 Million

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2020-06-24 04:18:00

Mastercard Inc (NYSE: MA) announced it entered into an agreement to acquire Finicity — which is a leading North American provider of real-time access to financial data and insights. The deal is valued at $825 million and Finicity’s existing shareholders have the potential for an earn-out of up to an additional $160 million if performance targets are met.

The addition of Finicity’s complementary technology and teams strengthens the existing Mastercard open banking platform to enable and safeguard a greater choice of financial services thus reinforcing the company’s long-standing partnerships with and commitment to financial institutions and fintechs across the globe.

Open banking gives people and businesses more control over their financial data. And this includes determining how and where third parties like fintechs or other banks can access that information to provide new services like money management programs or initiate payments on their behalf.

Mastercard has increasingly invested in this space over several years, including the 2019 launch of a set of comprehensive open banking solutions in Europe. And the combination of these efforts with Finicity’s technology powering platforms like Quicken Loans Rocket Mortgage and Experian Boost have the potential to shape the next generation of open banking services.

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