Visa, the global payments technology company, has announced its intention to acquire Pismo, a Brazilian payments platform, for $1.4 billion. The acquisition is part of Visa’s strategy to expand its presence in Latin America and strengthen its position in the region’s fast-growing digital payments market.
Pismo is a leading provider of payment processing services in Brazil, offering a range of solutions for businesses of all sizes. The company’s platform enables merchants to accept a variety of payment methods, including credit and debit cards, mobile payments, and online bank transfers. Pismo also provides value-added services such as fraud prevention, data analytics, and loyalty programs.
The acquisition of Pismo will give Visa access to a large and rapidly growing market in Brazil, which is one of the largest economies in Latin America. According to a report by eMarketer, Brazil’s digital payments market is expected to grow by 17% in 2021, reaching $38.9 billion in total transaction value. This growth is being driven by factors such as the increasing adoption of smartphones and mobile banking, as well as the COVID-19 pandemic, which has accelerated the shift towards digital payments.
Visa’s acquisition of Pismo will also help the company to compete more effectively with other players in the Brazilian market, such as Mastercard and local fintechs like PagSeguro and StoneCo. By integrating Pismo’s technology and expertise into its own platform, Visa will be able to offer a more comprehensive suite of payment solutions to merchants and consumers in Brazil.
In a statement announcing the acquisition, Eduardo Coello, Visa’s regional president for Latin America and the Caribbean, said: “With this acquisition, we will deepen our capabilities to offer innovative payment solutions that meet the evolving needs of merchants and consumers in Brazil. Pismo’s technology and talented team will complement Visa’s existing assets and accelerate our growth in the region.”
The acquisition of Pismo is subject to regulatory approval and is expected to close in the second half of 2021. Once completed, Pismo will become part of Visa’s Latin America and Caribbean division.
Overall, Visa’s acquisition of Pismo represents a significant investment in the future of digital payments in Brazil and Latin America. By expanding its presence in this fast-growing market, Visa is positioning itself for long-term growth and success in the region.
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