Plaid will use the cash injection to grow its platform, investing in infrastructure, payments capabilities and global expansion, UK head Keith Grose said.
The funding round comes a few months after Plaid and card provider Visa Inc. called off a planned $5.3 billion merger following a US government lawsuit aimed at stopping the proposed transaction on antitrust grounds. The deal, which was proposed in January 2020, was scrapped to avoid protracted litigation.
Plaid develops technology that enables consumers to link their bank accounts to share data and initiate payments with third-party apps. The company is a market leader in the United States, with clients including some of the country’s most well-known fintech firms, such as Coinbase, PayPal Holding Inc.’s Venmo and Betterment. It has recently started expanding into Europe.
The company says it has seen demand for its technology boom over the past year, as use of digital financial services grew because of global Covid-19 lockdowns.
“This year, we’ve gained significant traction in the UK and Europe, adding major UK fintech companies like Curve and Atom to our client roster,” Grose said in an interview. “However, Plaid still has work to do, particularly in Europe.”
The aims to help European companies expand to the United States and vice versa, Grose said.