By KEN SWEET
AP Business Writer
NEW YORK (AP) — Visa is purchasing the financial technology company Plaid for $5.3 billion, a major push by the payment processor into other types of money transfer systems outside of credit and debit cards.
Plaid allows consumers to connect their bank accounts to other types of financial services apps like Venmo, PayPal, Betterment and Transferwise. Its an important but relatively unknown middle man between the banks, who hold consumers’s cash, and the platforms who help send that money.
The Monday announcement is Visa’s first big push into a product that isn’t just credit and debits cards. Visa is the world’s largest payment processing company, but it makes almost entirely all of its money from swipe fees it earns from merchants whenever its cards are accepted.
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