Visa, the global leader in payment processing, has announced its acquisition of Pismo, a prominent fintech platform based in Brazil, for an astounding $1 billion in cash. This major deal signifies Visa’s commitment to expanding its presence in Latin America, demonstrating renewed confidence in the region’s potential despite a recent funding slowdown. By leveraging Pismo’s cutting-edge cloud-based platform, which currently serves an impressive user base of over 70 million accounts and facilitates transactions exceeding $200 billion annually, Visa aims to enhance its product offerings and enable clients to issue both Visa and Mastercard cards.
A Landmark Exit for Latin American Fintech
The acquisition of Pismo by Visa marks a significant milestone for the Latin American fintech landscape, representing the largest exit for a fintech company in the region since Nubank’s public listing in late 2021. It also stands as the most substantial disclosed startup exit of the year. Earlier reports suggested that Mastercard had shown interest in acquiring Pismo, but no official comment from the company has been made thus far.
Supporting Latin American Tech Amidst Funding Slowdown
Latin America has experienced a significant decline in venture funding, with an 82% year-on-year drop recorded in May, as reported by data group Sling Hub. This decline can be attributed to factors such as high interest rates, concerns of an economic recession, and market volatility impacting tech valuations. Visa’s acquisition of Pismo during this funding slowdown showcases the company’s dedication to supporting fintech growth in the region, signaling its belief in the long-term potential of Latin American technology.
Retaining Management and Global Operations
Following the completion of the deal, which is expected to conclude by the end of the year, Pismo will retain its current management team. The Sao Paulo-based company, founded by entrepreneurs Ricardo Josua, Daniela Binatti, Juliana Binatti, and Marcelo Parise, operates across Europe, North America, Southeast Asia, India, and Latin America, ensuring continuity in its global operations.
Investors and Funding
Pismo has successfully secured over $110 million in funding from prominent investors, including SoftBank Group Corp, Amazon.com Inc, venture capital firm Accel, and Headline, which currently holds approximately 30% ownership of the company and initially invested in its seed round.