New off the information the day gone by that Visa is buying for fintech unicorn Plaid for $5.3 billion, the payments enormous is making its case to its shareholders. Given the scale of the deal, and the implied wager that Visa is making on the methodology ahead for its market, the company ready a presentation, meaning we receive to head in quest of into its thinking concerning Plaid itself and the fintech market as a whole.
In a short deck, Visa argues that buying for Plaid will: 1) provide it with deep receive admission to to an exploding market (fintech), 2) motivate it boost enhance (at a miniature hit to profits) and 3) provide a methodology to enhance Visa’s total addressable market by constructing on Plaid’s miniature customer deplorable, taking into consideration future enhance.
Access to novel markets, faster earnings expansion and bigger total addressable market (TAM) are tender accurate issues for any exchange. Let’s see how Visa makes its case.
In Visa’s glimpse, the fintech world’s enhance is “very high.” The bank card and payments company experiences in its presentation to shareholders that fintech adoption (the percent of “internet enabled customers the exercise of no longer no longer up to 1 fintech app”) is rising at a 43% compound rate. Visa additionally highlights the quantity of capital going into the residence, specifically $120 billion within the final five years.