Why Wait for the Plaid IPO When You Can Buy Mastercard?
It has been an interesting 12 months for fintech company Plaid. Plaid, which develops the technology that allows users to connect their bank accounts to other payment apps like Square, was all set to be acquired by payment processing giant Visa (NYSE: V). But in January of 2021, the merger was called off after the Department of Justice (DOJ) sued Visa to block the merger, saying it would eliminate a competitive threat.
That meant Plaid had to pursue other options. This has led to speculation that Plaid, which was founded in 2013, would go public rather than seek out another partner. To this point, the company had been raising capital and has boosted its valuation to over $13 billion. While nothing is official yet, if Plaid did go public, it would surely be one of the most high-profile IPOs of the year.
While Plaid is a stock worth watching if and when it goes public, you might be better off investing that money in another fintech, Mastercard (NYSE: MA). Here's why.
Source Fool.com
