Visa, a global leader in digital payments, has signed a definitive agreement to acquire Pismo, an operational cloud-native issuer processing and core banking platform in Latin America, Asia Pacific, and Europe.
The deal, which totals $1bn in cash, will bolster Visa’s ability to serve its clients in the fintech and financial institution sectors.
The acquisition aims to equip Visa with Pismo’s core banking and issuer processing capabilities across a range of payment types including debit, prepaid, credit, and commercial cards. The platform will be accessible to clients via cloud native APIs. Furthermore, Pismo’s system will empower Visa to offer support and connectivity for emerging payment rails, such as Pix in Brazil.
Pismo, a technology company with extensive experience developing and implementing banking and card solutions, caters to both digital banks and large financial institutions. The company has a broad geographical reach, with operations spanning Latin America, Southeast Asia, and Europe. Its notable investors comprise Redpoint eventures, Softbank, Amazon, and Accel.
The acquisition signifies a significant strategic move for Visa. As Jack Forestell, chief product and strategy officer at Visa said, “Through the acquisition of Pismo, Visa can better serve our financial institution and fintech clients with more differentiated core banking and issuer solutions they can offer their customers.” Pismo’s CEO, Ricardo Josua, echoed this sentiment, stating, “Visa provides us unrivalled support to expand our footprint globally and help shape a new era for banking and payments.”
As part of the agreement, Pismo will retain its existing management team. Completion of the transaction is subject to regulatory approvals and other customary closing conditions, and is expected by the end of 2023.
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