Visa to acquire cloud-native issuer processor Pismo for $1bn
Global payment systems leader Visa has announced a definitive agreement to acquire Pismo, a cloud-native issuer processing and core banking platform with a presence spanning Latin America, Asia Pacific, and Europe.
The landmark deal, worth $1 billion, underscores Visa’s commitment to strengthening its technological prowess and broadening its global footprint.
Jack Forestell — Visa Chief Product and Strategy Officer 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.”
Established in Brazil, Pismo is renowned for its proficiency in creating and executing banking and card solutions for digital banks and leading financial institutions. This technology company, with operations extending to Southeast Asia and Europe, boasts a formidable investment portfolio including names like Redpoint eventures, Softbank, Amazon, and Accel.
Pismo experienced significant growth following its Series B funding round in October 2021, which raised $108 million led by SoftBank, Amazon, and Accel. This investment allowed Pismo to expand its operations into North America, Southeast Asia, India, and Latin America, positioning it as a global player in the digital banking and payment solutions sector.
Visa boosts global payments portfolio with $1bn acquisition of Pismo. Photo courtesy of hartono subagio from Pixabay.
In March 2023, Pismo enhanced its core banking and payments platform by introducing a new feature: digital lending. This innovative, cloud-native, API-based solution offers an embedded experience for BNPL (Buy Now Pay Later), successfully reducing costs and time-to-market.
The acquisition of Pismo aligns with Visa’s strategy to deliver robust core banking and issuer processing capabilities across various channels – debit, prepaid, credit, and commercial cards – to its clients through cloud-native APIs. Furthermore, the incorporation of Pismo’s platform will enable Visa to offer enhanced support and connectivity for emerging payment systems like Pix in Brazil.
Ricardo Josua — Pismo Co-Founder and CEO said: “At Pismo, we aim to enable our clients to launch cutting-edge payments and banking products within a single cloud-native platform – regardless of rails, geography or currency. Visa provides us unrivalled support to expand our footprint globally and help shape a new era for banking and payments.”
Maintaining continuity, Pismo’s current management team will retain their positions. The transaction, pending regulatory approvals and other customary closing conditions, is slated to be finalized by the end of 2023.
Visa’s acquisition of Pismo reflects the ongoing trend of traditional payment service providers adopting digital and cloud-based solutions. This strategic move places Visa at the forefront of this transformation, ready to provide sophisticated banking and payment solutions in an increasingly digital global economy.