The major deal represents one of the biggest mergers and acquisitions in the fintech landscape this year as Visa acquired Pismo, a Brazilian payments infrastructure startup, for a colossal $1 billion in cash.
Founded in 2016, Pismo has quickly gained recognition with a notable clientele that includes Citi, Itaú (one of Brazil's largest banks), Revolut, N26, Nubank, and Cora. With an annual processing volume of nearly $40 billion and powering over 80 million accounts and 40 million issued cards, Pismo has demonstrated remarkable growth.
Pismo's journey started in São Paulo, Brazil, but its success has crossed borders. Its operations have spread throughout Latin America, including Mexico and Chile, and into the U.S., Europe, India, Southeast Asia, and Australia. Pismo provides banks, fintechs, and other financial institutions with the flexibility they need to launch innovative products and services in areas such as cards and payments, digital banking, digital wallets, and marketplaces with its cloud-native issuer processing and core banking platform.
By harnessing Pismo's platform, financial institutions gain control over their core data, enabling intelligent utilization and decision-making.
Visa's Strategic Vision: Visa's acquisition of Pismo positions the company to provide comprehensive banking and issuer processing capabilities through cloud-native APIs, covering debit, prepaid, credit, and commercial cards. This strategic move allows Visa to offer support and connectivity for emerging payment rails, including Brazil's Pix, to its financial institution clients. Jack Forestell, Visa's chief product and strategy officer, highlights the importance of this acquisition in empowering financial institutions and fintech clients with differentiated issuer solutions that cater to the evolving needs of their customers. The deal is subject to regulatory approvals and customary closing conditions, with a targeted completion date by the end of the year. Notably, Pismo will retain its management team, headquartered in São Paulo, ensuring continuity and expertise.
Fueling Growth and Innovation: Pismo's impressive growth and exceptional product offering have attracted notable investors, including SoftBank, Amazon, and Accel.
After raising $108 million in its Series B funding round, Pismo has raised $118 million in funding to date, making its total funding to date $118 million. The acquisition by Visa represents a significant milestone for both companies, aligning their vision for revolutionizing global banking and payments.
The deal represents Visa's commitment to expanding its service offerings beyond card rails, providing critical APIs to financial institutions and strengthening its position as a leader in the industry.
Conclusion: Visa's acquisition of Pismo for $1 billion underscores the company's dedication to reshaping the fintech landscape and solidifying its role as a prominent player in the market. The deal enables Visa to offer cutting-edge core banking and issuer processing solutions, transforming the way financial institutions navigate the evolving needs of their customers. Pismo's impressive growth story, from its humble beginnings to becoming a key player in the payments infrastructure space, serves as a testament to the resilience and innovation of the Latin America region.