Visa : Acquisition of Plaid January 13, 2020 Presentation ( PDF 723 KB )

Visa's Acquisition of Plaid

January 13, 2020

Forward Looking Statements

This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as "will," "is expected," and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make regarding

the timing and likelihood of closing, Plaid's future success, the impact of the acquisition on Visa's growth, and the other benefits to Visa, developers, financial institutions and

consumers.

By their nature, forward-looking statements: (i) speak only as of the date they are made; (ii) are not statements of historical fact or guarantees of future performance; and (iii) are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from Visa's forward-looking statements due to a variety of factors, including the timing and outcome of the regulatory approval process, shifts in the regulatory and competitive landscape, Plaid's maintenance of relationships with sources of data, cyber incidents, the pace and success of integration, Plaid's success in international expansion, and various other factors, including those contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019, and our other filings with the U.S. Securities and Exchange Commission.

You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future developments or otherwise.

©2020 Visa. All rights reserved.

Strategic Rationale

Enhances Visa's role as a partner to fintech developers globally

Expansion of total addressable market

+

Acceleration of long-term revenue growth trajectory

Best-in-class platform and team

©2020 Visa. All rights reserved.

Fintechs Serve a Large Addressable Market with Very High Growth Rates

Internet Enabled Consumers1

(Billions)		% of World
			Population
2014		3.1	42%
2019		4.5	59%

Fintech Adoption2

• of internet enabled consumers using at least 1 fintech app

2015	18%	43%
CAGR
2017		50%

201975%

Users of Select Fintechs3

Fintech users growing 50%+
(Millions)		YoY Growth
Credit Karma		100	~18%
Venmo		40	N/A
Coinbase	30		~36%
Mint	20		~26%
Square Cash	15		~100%
NuBank	15		~150%
Toss	13		N/A
Clearscore	10		N/A
Etoro	10		N/A
Revolut	8		~167%
SoFi	7.5		N/A
Circle	7		N/A
Robinhood	6		~100%
Transferwise	6		~50%
Rainist	5		N/A
MoneyLion	5		~80%
Chime	5		N/A
Acorns	4.5		N/A
Monzo	3.6		~137%
N26	3.5		~96%
Dave	3.5		N/A
Stash	1.7		~100%

Fintech Funding4

VC-backed

$120 Billion

(7,688 Deals)

in the last 5 years

59

Unicorns

Valued over $200 billion

Source: 1. Internet World Stats; 2. Ernst & Young; 3. Individual company information; Not all are Plaid customers; 4. CB Insights

©2020 Visa. All rights reserved.

Plaid is the Best-in-Class Platform Connecting Fintech Developers, Financial Institutions and Consumers

• Plaid is a financial data network that makes it easy for people to securely connect their financial accounts to the apps they use to manage their financial lives
• Provides safe, secure connections for 80% of the largest U.S. fintech apps
• • 11,000+ bank and financial services companies
  • 2,600+ fintech developers
  • 200+ million consumer accounts, including one in four people with a U.S. bank account
• Headquartered in San Francisco; Founded in 2013
• Currently ~450 employees

200+ Million User Accounts

Account		Fintech
Authentication		Products &
& Authorization		Applications
2,600+ Fintech & Financial Institution Developers
Fintech 1	Fin. Instit. 2	Cust. 2,600+

Integrate With a Single Platform

Fin. Inst. 1

Fin. Inst. 2

Fin. Inst. 11,000+

11,000+ Connected Institutions & Data Sources

Linked Accounts

Checking Savings Credit Brokerage

Data

Account Information

Liabilities

Transaction Data

Identity Income Assets Balance

©2020 Visa. All rights reserved.

Plaid Offers a Compelling Value Proposition to its Partners

Accounts Linked to Plaid

(Millions)

200+

115%

CAGR 129

72

10	30
2015	2016	2017	2018	2019

Why Fintechs and FIs Choose Plaid

Financial	Integrated with 11,000+
Institution
financial institutions
Coverage

Uptime and tools result in

Reliabilityfewer errors and higher approval rates

Standardized data definitions Accuracyand classifications drive better

data accuracy and utilization

UserSimple and elegant interface Experienceand user experience

Benefits to Fintech

Developers

Customer	Easy and persistent
connections reduce user
Retention/
attrition and drive higher
Acquisition
satisfaction
	A single integration gets
Cost	developers full coverage of
Savings	their users' financial accounts,
	saving time and money
Transaction	Fresh, accurate and well-
structured data delivers higher
Reliability	transaction success rates
	Layered security and strong
Security	authentication drive down
both suspected and confirmed
	fraud rates

Source: Plaid

©2020 Visa. All rights reserved.

Plaid Expands Visa's Addressable Market

by Providing High Value Services to High Growth Fintechs

Growth Opportunities in Key N.A. Fintech Verticals

	Plaid Penetration		Portion of Vertical Not Penetrated
							Current Client
		Banking & Investing: 5% of ~$650M TAM	Examples

Lending:2% of ~$1000M TAM

International Expansion Opportunity

There are ~15x more fintech users in International markets vs. U.S.

Int'l

Consumer Payments: 3% of ~$950M

U.S.

Int'l

Financial Management: 4% of ~$350M TAM

Business Services: 7% of ~$200M TAM

	U.S.
Plaid	Fintech Market

Visa Accelerates Plaid's

International Expansion

Source: Plaid based on current products for North America

Fintech Market Source: Ernst & Young

©2020 Visa. All rights reserved.

©2020 Visa. All rights reserved.

Plaid Accelerates Visa's Network of Networks Money Movement Strategy

Global Reach Through Integrated Payments

Customer/	Fintech and		Card	Financial
End User	Other App		ACH/RTP	Institutions
	Developers		Digital Wallets

• Enhanced coverage of P2P and B2C use cases by integrating connector and payment services for fintechs
• Acceleration ofcross-border, network of networks money movement strategy by enabling fast and easy bank account authentication
• Best-in-classsolution for our clients in International Open Banking markets
• Integration of value added services - e.g. security, identity, dispute resolution - to payment solutions

offered to fintechs

Transaction Overview

Financial	•$4.9B cash consideration
•Approximately $400M of retention equity and deferred equity consideration in the form
Consideration
of Visa Restricted Stock units
Expected	•Fiscal Year 2021 revenue growth acceleration of 80-100 bps
•Fiscal Year 2021 non-GAAP1EPS dilution of 100-150 bps
Financial Impact
	•Expect transaction will be accretive to non GAAP EPS at the end of year three
Business	•Plaid CEO and co-founder Zach Perret will continue to run the business, reporting to
Leadership	Visa Chief Product Officer, Jack Forestell
	•Fund cash consideration with cash on hand and new debt issuance at the
Capital	appropriate time
Structure	•No impact on our capital allocation strategy, including our previously announced stock
	buyback program and our dividend policy
Expected	•Close in 3-6 months
Timing	•Subject to required regulatory approvals and other customary closing conditions

1Non GAAP EPS excludes amortization expense of acquired intangible assets, retention equity and deferred equity consideration expense, as well as non-recurring transaction and integration costs

©2020 Visa. All rights reserved.