Mastercard, Visa reportedly among bidders for Pismo USD 1 bln acquisition

Pismo is a provider of provides cloud-based payment and banking platforms. The potential acquisition is being valued at around USD 1 billion, according to sources familiar with the matter who requested anonymity due to the private nature of the negotiations. Pismo is said to be working with Goldman Sachs on the sale, and the interested parties include a bank and private equity funds.

Pismo's investors include SoftBank Latin America Fund, Amazon.com, Falabella Ventures, and Redpoint eventures, while Itau Unibanco and Banco BTG Pactual are among its clients. The company's platforms enable banks and financial technology firms to rapidly launch a wide range of products, including cards and payments, digital banking, digital wallets, and marketplaces.

Although an agreement has not yet been reached, last week, Valor Economico's website Pipeline reported that Visa had submitted a second offer to acquire Pismo, valuing the company at USD 1.4 billion, citing people with knowledge of the matter. Pismo's representatives, as well as those of Mastercard, Visa, and Goldman Sachs, declined to comment on the ongoing talks, Bloomberg states.

The potential acquisition of Pismo could be part of Mastercard and Visa's efforts to expand their digital payment capabilities and compete with other fintech firms. By acquiring Pismo, Mastercard and Visa would be able to add cloud-based payment and banking platforms to their portfolios, enabling them to offer more comprehensive and flexible services to their clients. Additionally, Pismo's technology could help Mastercard and Visa to streamline their product development processes and accelerate their time-to-market.

This news comes at a time when the fintech industry is experiencing significant growth and investment, with many traditional financial institutions looking to partner with or acquire fintech companies to enhance their offerings and stay competitive. If the acquisition goes ahead, it could signal further consolidation in the industry and set the stage for more deals to come. However, as the negotiations are still ongoing, it remains to be seen whether Mastercard, Visa, or any of the other interested parties will ultimately acquire Pismo, Bloomberg concludes.