Mastercard has signed an agreement to acquire American financial data and insights provider Finicity in a deal valued at $825m.

The purchase is part of the payment giant’s strategy to bolster its open banking capabilities.

According to the terms of the deal, the shareholders of Finicity can earn up to an additional $160m if the performance targets are met.

Mastercard will leverage Finicity’s technology and teams to its platform as it seeks to add banks and fintech firms to its roster.

Finicity co-founder and CEO Steve Smith said: “Enabling people to access and control their data while ensuring best practices to protect that data will continue to drive tremendous innovation that increases financial literacy, inclusion and health.

“This partnership with Mastercard helps us accelerate this mission globally.”

Post-acquisition, Mastercard will leverage Finicity’s new analytics platforms to streamline credit decisions for businesses in North America and other key geographies.

Additionally, Mastercard will integrate its payments platform with Finicity’s account owner verification tools to offer enhanced payments experience to consumers.

Mastercard president Michael Miebach said: “With the addition of Finicity, we expect to not only advance our open banking strategy but enhance how we support and accelerate today’s digital economy across several markets.

“Finicity also shares our commitment to consumer-centric data practices, ensuring consumers have a say in how and where their information should be used.

“It’s through the use of next-generation open banking APIs and clear consumer approvals that this financial information can deliver streamlined loan and mortgage processes, rapid account-based payment initiation and personal financial management solutions.”

Subjected to the receipt of regulatory approvals, the transaction is anticipated to close by the end of this year.