Visa (NYSE:V) announced yesterday that it has agreed to acquire Pismo, a cloud processing and core banking platform for $1 billion in cash.
The acquisition will allow Visa to provide support and connectivity for emerging payment rails for financial institution clients.
“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,” said Jack Forestell, chief product and strategy officer, Visa.
The transaction is expected to close by the end of 2023.
Morgan Stanley analysts weighed in positively on the acquisition.
“We like the acquisition as we think Pismo can improve Visa's optionality to gain exposure to consumer payments growth in international markets. We've consistently said that we don't incorporate a meaningful contribution from card network share gain in international/emerging markets to Visa's long-term growth algorithm, as we felt that governments internationally may favor their own local payment schemes,” they said in a note.