After a lengthy process, the deal for Visa to acquire Earthport is complete.
Earthport provides cross-border payment services to banks, money transfer service providers, and businesses. It manages this with the world’s largest independent ACH network.
Currently, Visa enables payments to be sent to and from Visa cards, but this deal will expand its capability. Visa clients will be able to enable individuals, businesses and governments to use Visa to send and receive money from bank accounts across the globe.
According to Visa, it now expects to be able to reach the vast majority of the world’s banked population.
Earthport technology will not be used by Visa to expand and scale Visa Direct’s growing portfolio of use cases. This includes funds disbursements, peer-to-peer payments, cross-border, marketplace payouts and also bill payments.
Over the last 12 months, Visa Direct’s transaction count growth has been over 100%.
“Visa is modernising 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 was part of a bidding war before the Visa deal. The UK Competition and Markets Authority (CMA) investigated the deal that followed the bidding war.
Competition watchdog CMA will assessed if the deal would result in less competition.
Visa increased its bid for Earthport to £0.37 per share in a revised deal worth £247m in February.
The rival deals come after a difficult year for Earthport. Earthport reported operating losses of £8.4m for the year to June 2018 on revenues of £31.9m.