Visa has acquired payment processor Currencycloud for $927 million. As a RippleNet user, Currencycloud could give Visa a new gateway to the cryptocurrency world. Also, it could give the XRP token a much-needed global use case.
Currencycloud sold for $927 million
Visa entered into a sales agreement with Currencycloud six months ago. Now it has completed the purchase and paid $927 million for the company.
Currencycloud was founded in 2012 and based in London. The company enables hundreds of banks and businesses to provide innovative currency solutions for cross-border payments. Since its inception, it has served customers in 180 countries and processed more than $100 billion.
In a press release, Visa known that it views the acquisition as highly strategic and stated:
“The acquisition enables Visa and Currencycloud customers and partners to provide greater transparency, flexibility and control to consumers and businesses when making international payments or doing business in multiple currencies.”
The two companies already made known that they had signed a definitive takeover agreement. At the time, Visa said Currencycloud would expand its existing currency capabilities and better serve its customers.
Why Purchasing Currencycloud Matters to Ripple
The purchase gives Visa an even greater presence in the financial and payments market, but it may be even more important for the crypto world.
In July of this year, Currencycloud announced that it had partnered with Ripple. The company will start using the RippleNet to better serve its users. RippleNet provides financial institutions around the world with an easy and cost-effective way to conduct cross-border wire transfers through a single API. Its customers can transfer money to all countries in the world in 22 seconds on average. They have also reported cutting costs by 40 percent. This is quite an achievement, as cross-border transfers can traditionally take up to five business days.
While it was announcing the partnership at the time, claimed Currencycloud the following:
“The partnership with Ripple will enable Currencycloud to explore new mechanisms to move money around the world efficiently, especially where regulations and restrictions limit opportunities for SMBs.”
Visa has become a major player in the cryptocurrency industry in recent years. Between October 2020 and September 2021, it processed $3.5 billion in cryptocurrency-related transactions. It also invests heavily in crypto integrations and even bought an NFT for $150,000.