Visa announced Thursday that it's buying Tink, the Swedish open-banking fintech, for $2.2 billion. The deal comes five months after regulatory pressure led Visa to ditch its $5.3 billion deal to buy Plaid.
Tink helps banks and fintechs connect to each other, allowing them to use an API to build open-banking tools like personal finance management apps and account verification. European open-banking regulation in the aftermath of the financial crisis made this a major growth area for fintechs, and similar legislation is under consideration in the U.S.
For Visa, Tink could offer another chance at becoming a key fintech player. In a recent interview with Protocol, Visa global head of fintech Terry Angelos said that fintech was "one of the biggest growth engines" for the company. Tink could also help Visa better compete with Mastercard, which bought Plaid and Tink competitor Finicity last year.
The deal still has to be approved by regulators, though — and as the Plaid deal showed, there's no guarantee that will happen.