Visa has completed its acquisition of Earthport, which barring any changes to earlier reports will pay $321.45 million for the cross-border payments service provider. Earthport provides cross-border payment services to banks, money transfer service providers and businesses via the world’s largest independent ACH network, and with this acquisition Visa’s network of customers are to benefit from this network.
The deal had some setback when Britain’s Competition and Markets Authority (CMA) launched an inquiry into Visa Inc’s planned acquisition of Earthport Plc to determine if it would reduce competition in the country. Last week, CMA ruled the acquisition does not qualify for investigation, clearing the path for Visa and Earthport to conclude the deal.
Visa currently enables payments to be sent to or from Visa cards, and this acquisition will make it possible for Visa clients to enable individuals, businesses and governments to utilize Visa to send and/or receive money through bank accounts around the world. With the acquisition of Earthport, Visa expects to be able to reach the vast majority of the world’s banked population and allow them to easily, quickly and securely move money worldwide.
According to Visa in a statement, nearly $80 trillion of money is sent via a wire transfer or bank account globally today, but the process is harder and more complex than it should be. Money can take days to arrive because of outdated, inefficient and costly methods.
“Visa is modernizing the way we move money by making it quicker, safer and easier to pay and be paid than ever before,” said Bill Sheley, head of global push payments, Visa. “The acquisition of Earthport unleashes the power of Visa by taking us ‘beyond the card,’ empowering us to enable our clients to make payments through bank accounts around the world.”
Earthport’s technology will allow Visa to further expand and scale Visa Direct’s rapidly growing portfolio of use cases, including funds disbursements, peer-to-peer payments, cross border payments, marketplace payouts, and bill payments. Over the last 12 months, Visa Direct’s transaction count growth has continued to be over 100% – showing the demand for faster, smarter money movement among consumers and businesses around the world.
This transaction, it says, can solve for many use cases including payroll and international person-to-person and business-to-business remittances.