US-based financial services firm Visa has agreed to acquire YellowPepper, a mobile financial solutions provider in Latin America and the Caribbean, for undisclosed amount.
The acquisition builds on Visa’s previous partnership and investment in YellowPepper in May 2018.
With a set of APIs, the YellowPepper platform allows issuers, processors and governments to securely access different payment rails for multiple payment flows through single connection.
Visa said that the acquisition will speed up the adoption of its “network of networks” strategy by reducing the time-to-market and cost for issuers and processors, regardless of owners or operators the payment rails.
Visa Latin America and the Caribbean regional president Eduardo Coello said: “We are extremely excited about our acquisition of YellowPepper and how it enhances the growth trajectory of our business in Latin America and the Caribbean.
“The acquisition will accelerate Visa’s ability to create innovative and accessible digital payment solutions that empower consumers and businesses, allowing them to thrive socially and economically.
“YellowPepper’s technology, which acts like a ‘universal adapter’, will be key to build on our ’network of networks’ strategy to become a single point of access for initiating any transaction type and enabling the secure movement of money.”
Acquisition will combine Visa Direct platform with YellowPepper capabilities
With the acquisition, YellowPepper will be easily integrated to Visa’s real-time push payments platform Visa Direct, non-card-based cross-border B2B payment network Visa B2B Connect, and value added services.
Also, the transaction is expected to expand digital products and services to provide safe experiences for the ecosystem, and grow new flow volumes and transactions, said the company.
The combination of Visa Direct capabilities and YellowPepper’s Alias Directory, Customer Identity profile and Smart Routing tools is expected to enable consumer to use a personal credential including email, phone number or others, to exchange money through their bank.
The transaction is expected to be completed in the few weeks, subject to regulatory approvals and other customary closing conditions.
