- Visa got into a sales agreement earlier in the year but is only now completing the purchase of cross-border payments processor Currencycloud for £700 million ($927 million).
- Being a RippleNet user, Currencycloud could give Visa a new gateway into the cryptocurrency world and could give XRP some much-needed global use case.
Global financial behemoth Visa Inc. has completed the acquisition of U.K payment solutions and infrastructure provider Currencycloud. Visa entered a sales agreement with the company six months ago and has now completed the purchase, paying £700 million ($927 million) for the firm. Being a RippleNet partner, Currencycloud could give Visa a new gateway into the world of cryptocurrencies at a time when it’s expanding its presence in the sector aggressively.
Founded in 2012 and based in London, Currencycloud allows hundreds of banks and fintech companies to provide innovative foreign exchange solutions for cross-border payments. Since its founding, it has served clients in 180 countries and processed over $100 billion.
In a press release, Visa revealed that it views the acquisition as very strategic, stating:
The acquisition will empower Visa and Currencycloud clients and partners to provide greater transparency, flexibility and control for consumers and businesses when making international payments or doing business in multiple currencies.
The two companies announced that they had signed a definitive agreement for acquisition back in July. At the time, Visa said that Currencycloud would increase its existing foreign exchange capabilities and allow it to serve its clients better.
Why the Currencycloud purchase is significant for XRP
The purchase gives Visa an even bigger presence in the financial and payments market. However, for the cryptocurrency sector, it does much more.
In July this year, Currencycloud announced that it had entered into a partnership with Ripple to leverage its RippleNet solution to better serve its users. RippleNet offers financial institutions around the world an easy and cost-effective way to conduct cross-border funds transfers via a single API. Its clients can move funds in an average of 22 seconds and have reported to cut down costs by 40 percent. This is quite an achievement, given that traditionally, cross-border funds transfers can take up to five business days.
Some of its clients include Spain’s Banco Santander, Bank of America, SBI Remit, American Express, and India’s Indusind Bank.
While announcing the partnership at the time, Currencycloud claimed that “the partnership with Ripple will allow Currencycloud to explore new mechanisms for moving money efficiently around the world, especially where regulations and limitations restrict opportunities for SMEs.”
Visa has become a key player in the cryptocurrency industry in recent years. Between October 2020 and September 2021, it processed $3.5 billion in cryptocurrency-related transactions. It’s also investing heavily in crypto integrations and even purchased an NFT for $150,000.