To expand its offerings into core banking and card issuer processing platform solutions while still allowing it to support multiple payment networks, Visa (NYSE: V) has completed its acquisition of Pismo, a cloud-based financial technology startup.
The deal was first announced in November 2023 when Visa agreed to buy the fintech company for $1.2 billion.
Visa Completes Acquisition of Fintech Startup Pismo
Pismo has developed a suite of cloud-native APIs and microservices, enabling banks and financial institutions to rapidly build and launch digital banking products. Its platform can handle services ranging from account opening to payments and card issuing.
With Pismo’s technology, Visa aims to expand its offerings to its financial services partners. Visa stated that the combination will allow it to provide clients with core banking, card issuing, and real-time payments capabilities via modern cloud-based APIs.
Visa today announced it has completed the acquisition of @pismo_io – a global cloud-native issuer processing and core banking platform. https://t.co/k6klSUKzKO pic.twitter.com/Bz29CjtZi3
— VisaNews (@VisaNews) January 16, 2024
Pismo will continue operations as a Visa subsidiary led by its existing management team, including the Co-Founder and CEO, Ricardo Josua.
“The combination of Visa and Pismo will enable our clients to launch innovative payments and banking products within a single cloud-native platform regardless of network, geography, or currency,” Josua commented. “The closing marks a new era for banking and payments.”
Moving beyond Card Payments
The deal reflects Visa’s strategy to move beyond card payments into broader financial infrastructure services. As online and mobile banking grow, legacy systems can’t keep up, opening opportunities for modern platforms like Pismo’s.
According to Jack Forestell, the Chief Product and Strategy Officer at Visa, with the combination of Visa and Pismo features, the payment giant can now “broaden these offerings and better serve the ecosystem.”
The finalized purchase expands Visa’s addressable market and product portfolio for financial institutions as they transition from legacy to cloud-based infrastructure.
“VISA’s acquisition of the Brazilian payment platform Prismo, along with the recently announced purchase of the Mexican platform PROMO, reflects on Visas pursuit of expansion not only into Latin America but also international markets,” said Anna Spenceley, the Chief Financial Officer at C&F.
“This move is driven by the global surge in digital payment adoption. By positioning itself in Latin America and beyond, Visa is poised to capitalize on the widespread growth of digital payments, acknowledging the increasing importance of these technology-driven financial solutions on a global scale.”
This represents another step towards broadening the product range after the payment giant announced earlier this year the launch of a new digital loyalty solution named Visa Web3 Loyalty Engagement. Developed in collaboration with SmartMedia Technologies, this innovative solution merges Web 2 and Web 3 technologies. Visa’s foray into Web3 via its Loyalty Engagement solution aligns strategically with the concepts of decentralization.
2023 was one of the best years in Visa’s history on the American stock market. The company’s shares on the NYSE grew 25% after two years of declines during the pandemic period. It is worth noting that since its stock market debut in 2008, Visa’s shares have only recorded negative years four times. The total return on investment from day one exceeded 2000%.
To expand its offerings into core banking and card issuer processing platform solutions while still allowing it to support multiple payment networks, Visa (NYSE: V) has completed its acquisition of Pismo, a cloud-based financial technology startup.
The deal was first announced in November 2023 when Visa agreed to buy the fintech company for $1.2 billion.
Visa Completes Acquisition of Fintech Startup Pismo
Pismo has developed a suite of cloud-native APIs and microservices, enabling banks and financial institutions to rapidly build and launch digital banking products. Its platform can handle services ranging from account opening to payments and card issuing.
With Pismo’s technology, Visa aims to expand its offerings to its financial services partners. Visa stated that the combination will allow it to provide clients with core banking, card issuing, and real-time payments capabilities via modern cloud-based APIs.
Visa today announced it has completed the acquisition of @pismo_io – a global cloud-native issuer processing and core banking platform. https://t.co/k6klSUKzKO pic.twitter.com/Bz29CjtZi3
— VisaNews (@VisaNews) January 16, 2024
Pismo will continue operations as a Visa subsidiary led by its existing management team, including the Co-Founder and CEO, Ricardo Josua.
“The combination of Visa and Pismo will enable our clients to launch innovative payments and banking products within a single cloud-native platform regardless of network, geography, or currency,” Josua commented. “The closing marks a new era for banking and payments.”
Moving beyond Card Payments
The deal reflects Visa’s strategy to move beyond card payments into broader financial infrastructure services. As online and mobile banking grow, legacy systems can’t keep up, opening opportunities for modern platforms like Pismo’s.
According to Jack Forestell, the Chief Product and Strategy Officer at Visa, with the combination of Visa and Pismo features, the payment giant can now “broaden these offerings and better serve the ecosystem.”
The finalized purchase expands Visa’s addressable market and product portfolio for financial institutions as they transition from legacy to cloud-based infrastructure.
“VISA’s acquisition of the Brazilian payment platform Prismo, along with the recently announced purchase of the Mexican platform PROMO, reflects on Visas pursuit of expansion not only into Latin America but also international markets,” said Anna Spenceley, the Chief Financial Officer at C&F.
“This move is driven by the global surge in digital payment adoption. By positioning itself in Latin America and beyond, Visa is poised to capitalize on the widespread growth of digital payments, acknowledging the increasing importance of these technology-driven financial solutions on a global scale.”
This represents another step towards broadening the product range after the payment giant announced earlier this year the launch of a new digital loyalty solution named Visa Web3 Loyalty Engagement. Developed in collaboration with SmartMedia Technologies, this innovative solution merges Web 2 and Web 3 technologies. Visa’s foray into Web3 via its Loyalty Engagement solution aligns strategically with the concepts of decentralization.
2023 was one of the best years in Visa’s history on the American stock market. The company’s shares on the NYSE grew 25% after two years of declines during the pandemic period. It is worth noting that since its stock market debut in 2008, Visa’s shares have only recorded negative years four times. The total return on investment from day one exceeded 2000%.
