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Visa (V) to Buy Pismo, Boost Capabilities & Market Presence

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Visa Inc. (V - Free Report) has announced a definitive agreement to acquire Pismo for $1 billion in cash. This acquisition positions Visa to provide advanced core banking and issuer processing capabilities across various card types, including debit, prepaid, credit and commercial cards. By leveraging Pismo's platform, Visa aims to offer support and connectivity for emerging payment rails, enabling financial institutions to enhance their payment offerings.

Pending regulatory approvals and other customary closing conditions, the transaction is expected to be closed by the end of 2023.

Pismo to Offer Strong Foundation for Future Growth

Sao Paulo-based Pismo, a renowned technology company with a strong presence in Latin America, Southeast Asia, and Europe, offers a cloud-native issuer processing and core banking platform. Per Reuters, Pismo’s cloud-based platform for financial institutions hosts more than 70 million accounts and transacts more than $200 billion a year, providing the technology through which clients can issue Visa and Mastercard cards.

Pismo's platform will enable Visa's clients to launch cutting-edge payments and banking products seamlessly, regardless of geography, currency, or payment rails.

This strategic move will empower Visa's clients to offer their customers innovative and personalized payment experiences, strengthening their market position in the rapidly evolving fintech landscape.

Building on a Legacy of Strategic Acquisitions

Visa's acquisition of Pismo follows a longstanding tradition of strategic acquisitions that have propelled the company's growth and market dominance. Through acquisitions, Visa has consistently demonstrated its commitment to innovation and meeting the evolving needs of its clients and consumers. By integrating cutting-edge technologies and expanding its capabilities, Visa has strengthened its position as a leader in the digital payments landscape. The acquisition of Pismo aligns with Visa's strategy of fostering partnerships and investing in platforms that enable secure, convenient and seamless payment experiences worldwide.

Visa's acquisition of Pismo marks a significant milestone in the company's pursuit of providing advanced core banking and issuer processing solutions. Per Reuters, this marks a major move since 2021 when the payments giant acquired European open banking platform Tink for $2.2 billion as well as British cross-border payments provider, Currencycloud. As Visa continues to expand its global footprint, this strategic move reinforces the company's commitment to shaping the future of banking and payments while maintaining its position as a leading player in the digital payments ecosystem.

Zacks Rank and Price Performance

Visa carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Visa have risen 9.7% in the past year compared with the industry’s 7.3% jump.

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Other Stocks to Consider

Some other top-ranked stocks from the same space are Wex Inc. (WEX - Free Report) , Green Dot (GDOT - Free Report) and Paysafe Limited (PSFE - Free Report) , each carrying Zacks Rank #2.

WEX’s earnings surpassed the Zacks Consensus Estimate in the last four quarters, with the average surprise being 5.36%. The Zacks Consensus Estimate for WEX’s 2023 and 2024 earnings per share indicates a year-over-year increase of 5.8% and 5.4%, respectively. Year to date, WEX shares have gained 10.5%.

Green Dot delivered an average four-quarter earnings surprise of 37.34%. The Zacks Consensus Estimate for 2024 earnings per share indicates a year-over-year increase of 19.5%. Year to date, GDOT shares have lost 20.1%.

Paysafe delivered an average four-quarter earnings surprise of 190.54%. The Zacks Consensus Estimate for ENSG’s 2023 and 2024 has moved 243.7% and 58.6%, respectively. Year to date, PSFE shares have lost 26.2%.

Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.

 


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