Visa to Acquire Pismo. a Banking and Payments Tech Firm, For $1B

Visa (NYSE: V) recently announced it has signed a definitive agreement to acquire Pismo for $1 billion in cash.

Together, they will be positioned “to provide core banking and issuer processing capabilities across debit, prepaid, credit and commercial cards for clients via cloud native APIs.”

Pismo’s platform will also enable Visa “to provide support and connectivity for emerging payment rails, like Pix in Brazil, for financial institution clients.”

Visa claims it is “a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories.”

Jack Forestell, Chief Product and Strategy Officer, Visa, said:

“Through the acquisition of Pismo, Visa can better serve our financial institution and fintech clients with more differentiated core banking and issuer solutions they can offer their customers.”

Ricardo Josua, Co-Founder, CEO, Pismo, said:

“At Pismo, we aim to enable our clients to launch cutting-edge payments and banking products within a single cloud-native platform, regardless of rails, geography or currency. Visa provides us unrivalled support to expand our footprint globally and help shape a new era for banking and payments.”

Pismo will “retain their founders and current management team.”

The transaction is “subject to regulatory approvals and other customary closing conditions and is expected to close by the end of 2023.”

As reported recently, Citi Treasury and Trade Solutions (TTS) and Pismo, the next-gen banking and payments technology company, announced that Citi will “use the Pismo Platform to help strengthen Citi’s corporate demand deposit accounts (DDA) to clients worldwide.”

Citi TTS is part of Citigroup, “the 11th largest financial group in the world (according to S&P Global), with banking licenses in over 90 countries.”

It provides “an integrated suite of innovative and tailored cash management and trade finance services, serving multinational corporations, financial institutions, and public sector organisations across the globe.”

Citi TTS operations are “based on the industry’s largest proprietary network and globally integrated technology platforms.” It offers “a comprehensive range of digitally enabled treasury, trade, and liquidity management solutions.”

Citi TTS continues “migrating its solutions, services, and infrastructure to create always-on capabilities to improve the overall client experience and allow clients to operate in real-time 24×7.”

Upgrading the current DDA infrastructure is “a core element of Citi TTS technology revamping strategy, allowing for better scalability and increased processing volumes.”

The Pismo cloud-native platform is “a key element of this evolution.”

It comprises hundreds of microservices “communicating with front-end applications through application program interfaces (APIs).”

This architecture makes “the platform resilient and flexible, enabling the rapid deployment of new financial products.” Furthermore, it’s “a high-throughput system that has exceeded 75,000 authorisations per second in benchmark tests.”

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