Following this announcement, the integration of Visa and Pismo is expected to provide clients and customers with core banking and card-issuer processing capabilities, across all of the product types through cloud-native APIs. Pismo’s platform is set to enable Visa to offer support and connectivity for emerging payment schemes, as well as RTP networks for financial institution users.
Core banking and issuer processor offerings represent key capabilities for many banks and financial institutions, as well as fintech partners’ customers. As the transaction is completed, both Visa and Pismo will combine their suite of solutions and expertise in order to expand their offerings and optimise the manner in which the ecosystem develops.
Both companies will focus on meeting the needs, preferences, and demands of the customers and users in an ever-evolving market, while also remaining compliant with the requirements and the laws of the industry. At the same time, the acquisition is expected to provide clients with the possibility to launch innovative payments and banking tools within a single cloud-native platform, regardless of their network, geographic region, or currency.
Back in June 2023, Visa announced its decision to sign a definitive agreement to acquire Pismo for the sum of USD 1 billion in cash. Pismo’s cloud-based platform for financial institutions was developed in order to host over 70 million accounts and transact more than USD 200 billion per year. This was focused on enabling customers and users to issue Mastercard and Visa cards.
By acquiring Pismo, Visa was expected to be positioned in order to provide core banking and issuer processing offerings to clients through the use of cloud-native APIs, for multiple types of cards, such as debit, prepaid, credit, and commercial. Pismo’s infrastructure was set to allow Visa to facilitate and link financial institutions' customers in order to develop payment rails, such as Piz in Brazil.
According to the press release published at the time, Visa was merely one of the numerous corporations competing for the startup, which was not looking to be purchased or even raise funds. Pismo aimed to maintain its present management team as part of the purchase, which was slated to be finalised by the end of the year. At that time, the acquisition still represented regulatory clearances and other standard closing conditions.
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