Visa (NYSE: V), an enabler of digital payments, announced it has entered into a definitive agreement to acquire a majority interest in Prosa, a payments processor in Mexico, to accelerate “the adoption of secure and innovative digital payments in the country.”
Under the agreement, Prosa will continue “to operate as an independent company with its own technology infrastructure, while Visa looks to expand Prosa’s product offerings with new digital solutions, as well as share its experience and knowledge managing a global network and set of technology capabilities.”
Prosa will continue commercially “providing its brand-agnostic solutions, with its current leadership team staying on to lead the organization.”
The transaction is subject to regulatory approvals and “other customary closing conditions and is expected to close during the second half of 2024. Over the coming months, Visa will work closely with participants in the Mexican payment ecosystem, including regulators, current shareholders and the management and board of directors of Prosa to ensure a smooth closing of the transaction.”
As a result, an important percentage of the payment transactions happening today in Mexico are expected to continue “to be increasingly efficient and secure supported by Visa’s global experience.”
Eduardo Coello, Regional President for Visa Latin America and the Caribbean, said:
“Technology and innovation are the foundation of our business and at the core of what we do. As such, this investment is part of our ‘network of networks’ strategy where we leverage best-in-class technologies from around the world to complement our own. With the enhanced technology infrastructure provided by Visa’s global payments network, we are setting the groundwork to develop new, innovative ways to pay and be paid for consumers and small businesses alike alongside local issuers and acquirers in Mexico.”
Visa’s investment in Prosa is expected to “enable global payments ecosystem players to take a more active role in Mexico’s payment landscape, increasing the range of possibilities for both consumers and merchants.”
In addition, Prosa will be able to “offer an array of new benefits to the Mexican payment’s ecosystem.”
Once the transaction closes, Prosa, working together “with issuers and other participants in the payments market, will seek to promote such benefits amongst the cardholders in Mexico, including a plan to improve the technology that supports the brand agnostic services offered by Prosa, as well as Visa brand services such as more tokenized payments.”
Visa’s investment in Prosa is also “expected to allow Prosa’s partners to offer micro and small businesses products that will give them the benefit of new digital options to expand their acceptance, including several Visa products to transform transaction data into actionable information for them to make informed business decisions, optimize revenues and processes, and enrich overall cardholder experience.”
