Mastercard will buy Finicity in a deal valued at US$825 million (A$1.1 billion), adding a fintech firm that helps banks share customer data with other financial firms.
The world’s second-largest payments processor also said Finicity’s existing shareholders can get an earn-out of up to an additional US$160 million, if performance targets are met.
Finicity will help Mastercard strengthen its open banking services, which allow customers to determine how and where third parties such as fintechs or other banks can access information to initiate payments on their behalf or provide money management services.
Finicity has partnered with major financial institutions in the past including Wells Fargo & Co, Fidelity Investments, Capital One Financial Corp and JPMorgan Chase, according to the firm’s website.
Mastercard also added it does not expect this deal to be a drag on its business for more than two years.
The deal is expected to close by the end of the year.