MasterCard Inc. said on Tuesday that it would buy Finicity in a $ 825 million deal, adding a fintech company that helps banks share customer data with other financial companies.

The world's second-largest payment processor also said that Finicity's existing shareholders contributors can get a profit of an additional $ 160 million if performance targets are met.

Finicity will assist Mastercard in enhancing its open banking services, allowing customers to determine how and where third parties such as fintech or other banks can access information to initiate payments on their behalf or provide money management services.

Finicity has partnered with major financial institutions in the past, including Wells Fargo & Co, Fidelity Investments, Capital One Financial Corp, and JPMorgan Chase, according to the company’s website.

MasterCard also added that it does not expect this agreement to place a burden on its business for more than two years.

The deal is expected to close at the end of the year.

Source: MSN, FInancing

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