Visa to acquire Plaid, the fintech powering Venmo and other banking apps, for $5.3 billion

Payments giantVisa is buying payments start-up Plaid for $5.3 billion, the companies announced Monday. 

Plaid is well-known among Silicon Valley developers, the average person interacting with it most likely wouldn't recognize the name. Its API software quietly powers fintech companies such as popular peer-to-peer payment app Venmo, mobile investing app Robinhood and cryptocurrency exchanges Coinbase and Gemini.

The company raised a $250 million Series C funding round in 2018 that launched its valuation to $2.7 billion. The start-up also added widely followed venture capitalist Mary Meeker to the board.  As of December, Plaid said 25 percent of people in the United States with bank accounts have connected to the fintech company through an app — a 13 percent increase from last year.

— This is breaking news. Please check back for updates.