Visa acquires Pismo, a Brazilian payments platform, for $1 billion in a move to expand its presence in Latin America. Pismo, founded in 2016, is a payment processor and core banking platform operating in Latin America, Asia Pacific, and Europe. With explosive growth in recent years, it currently processes $40 billion in transaction volume annually, serving nearly 80 million accounts.

Pismo’s technology enables clients such as Revolut, N26, Nubank, and Citi to issue Visa and MasterCard cards. This acquisition allows Visa to offer enhanced core banking and issuer solutions to financial institutions and fintech clients.

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The deal, expected to close by year-end, represents Visa’s first major acquisition since 2021. It is also Latin America’s largest fintech exit since Nubank’s public listing. Pismo will retain its existing management team under the agreement, and the company has raised over $110 million from investors including SoftBank and Amazon.

What does this mean for Latin American venture capital?

  • Visa’s acquisition of Pismo for $1 billion signifies a significant milestone for Latin American venture capital, showcasing the region’s potential and attracting increased attention from investors.
  • The deal highlights the growing interest in fintech and payment platforms in Latin America, which could lead to a surge in venture capital investments in the sector.
  • This acquisition could also inspire confidence among venture capitalists, encouraging them to allocate more funds to support the development and expansion of innovative startups in the Latin American fintech ecosystem.

What does it mean for Latin American startups?

  • The acquisition of Pismo by Visa for $1 billion brings positive attention to Latin American startups, demonstrating their potential for growth and attracting more interest from investors.
  • It could lead to increased funding opportunities for Latin American startups, especially those in the fintech and payment sectors, as investors recognize the value and potential of the region’s entrepreneurial ecosystem.
  • The acquisition may also foster collaboration and partnerships between Latin American startups and established players in the industry, opening doors for innovation and further growth in the region’s startup ecosystem.

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