It has been reported that Visa and Mastercard are competing with other firms to acquire Pismo, a Brazilian payment and banking platform. This acquisition would potentially allow the companies to expand their offerings and compete with other payment processors in the market.
Pismo provides a digital platform for payments and financial services, making it a valuable addition to Visa and Mastercard’s existing capabilities. According to Bloomberg, other interested parties include a bank and a private equity firm, and it is uncertain whether talks will result in a sale.
According to anonymous sources familiar with the matter, Pismo is a provider of cloud-based payment and banking platforms that is currently being valued at around USD 1 billion in a potential acquisition. Goldman Sachs is said to be working with Pismo on the sale, with a bank and private equity funds expressing interest. 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.
According to reports, Visa made an initial offer of $1 billion, which was rejected by Pismo, before upping its bid to $1.4 billion. Pismo, which was founded in 2016 and is based in São Paulo, offers a cloud-native platform for payment and banking services, including digital banking, core banking, cloud computing, card-issuing and digital wallets. In October 2021, the firm raised $108 million in a Series B funding round from Amazon, SoftBank and Accel in order to expand its operations across Asia. Pismo declined to comment on the reports.
While no agreement has been reached yet, Valor Economico’s website Pipeline recently reported that Visa submitted a second offer to acquire Pismo, valuing the company at USD 1.4 billion. Representatives from Pismo, Mastercard, Visa, and Goldman Sachs declined to comment on the ongoing talks.
The potential acquisition of Pismo could be a strategic move for Mastercard and Visa, who are looking to expand their digital payment capabilities and compete with other fintech firms. If acquired, Pismo’s cloud-based payment and banking platforms could enhance their offerings and streamline product development processes.
This news comes as the fintech industry continues to experience growth and investment, with traditional financial institutions seeking partnerships or acquisitions with fintech companies to stay competitive. The potential acquisition of Pismo could signal further consolidation in the industry, although it remains to be seen whether Mastercard, Visa, or any other interested party will ultimately acquire the company.