Mastercard to Acquire European Bank Connection API Aiia

Home » FinTech » FinTech News » Mastercard to Acquire European Bank Connection API Aiia

Mastercard to Acquire European Bank Connection API Aiia

Mastercard is back to buying up FinTechs. This week, the company announced plans to acquire to European open banking technology provider Aiia — although terms of the deal were not disclosed. The planned acquisition of Aiia comes less than a year after Mastercard completed its purchase of open banking platform Finicity for $825 million.

Of course, that transaction followed Visa’s announcement that it would purchase Plaid for a whopping $5.3 billion. However, that deal later fell through after the Department of Justice moved to block it on antitrust grounds. Nevertheless, Plaid has continued to be a dominant FinTech force, closing a $425 million funding round earlier this year.

In a press release, Mastercard’s Chief Product Officer Craig Vosburg shared the vision for the company’s acquisition of Aiia, stating, “The value of open banking comes through empowering consumers and businesses to use their own data to obtain financial services solutions simply, securely and quickly. The addition of Aiia anchors our European open banking efforts and allows us to continue to meet our customers where they are.” Vosburg went on to say, “As open banking continues to ignite innovation, we’re committed to providing a unique set of technology platforms, data connectivity and infrastructure combined with data privacy and security principles. This will help FinTechs and financial institutions innovate, gather feedback and scale faster and more effectively than ever to power smarter, more meaningful experiences.”

On the other end of the transaction, Aiia founder and CEO Rune Mai noted the larger vision of the company, saying, “For the past decade, we have worked to build Aiia into a leading and quality-driven open banking platform, which has onboarded hundreds of banks and FinTechs onto safe and secure open banking rails. We have worked closely alongside banks, customers, and local authorities to ensure that our APIs show the true effect of open banking.” On the prospect of joining Mastercard, Mai said, “We’re excited to become a part of Mastercard and progress our journey of empowering people to bring their financial data and accounts into play – safely and transparently.”

Through its acquisitions of Finicity and now Aiia, it’s clear that Mastercard has a vision for what role it can play in the future of finance and banking. Meanwhile, Visa must be frustrated that Mastercard is able to grow this aspect of its business while its aspirations were scuttled by regulators. On that note, it will be interesting to see if the FinTech’s joined under Mastercard’s umbrella might eventually prove to be a force capable of taking on Plaid — but we’ll need to wait on the answer to that one.

Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Credit Strong for Business Overview

For small business owners, business credit can be a bit of a mystery. Not only are there separate business credit bureaus but they often have different scoring models than those familiar to consumers. Further complicating matters is that, in some cases, business owners will rely on their personal credit to...

GoHenry Introduces "Money Missions" Encouraging Financial Education

After raising $40 million late last year and expanding into the United States, the kid-centric FinTech app GoHenry has now added a significant feature to its platform. This week, the app announced the debut of Money Missions. With Money Missions, children can learn about various personal finance topics while earning...

Cardless Launches Boston Celtics Credit Card

The FinTech Cardless has just revealed its latest product. This time around, the company has partnered with the famed Boston Celtics to create the aptly named Boston Celtics Credit Card. In terms of rewards, fans can earn 7x points on Celtics tickets as well as on rideshare and streaming service...