The acquisition will allow an important percentage of payment transactions happening in Mexico to benefit from being more efficient and secure by leveraging Visa’s network infrastructure and technological expertise.
MIAMI--(BUSINESS WIRE)--Dec. 15, 2023--
Visa (NYSE: V), a world leader in digital payments, announced today it has entered into a definitive agreement to acquire a majority interest in Prosa, a leading 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. “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,” said Eduardo Coello, Regional President for Visa Latin America and the Caribbean. “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. Prosa will also seek to push for new services such as the ability to send and receive payments in near real-time and state of the art technology that brings greater efficiency to payments, through Visa’s suite of solutions. The development of new solutions will continue to incentivize greater competition in the Mexican market for the benefit of consumers.
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. New services to be rolled out in time will include those aimed at allowing both consumers and merchants to count on more efficient and reliable e-commerce transactions thanks to Visa’s suite of comprehensive, AI-powered fraud risk management tools.
Prosa has more than five decades of experience processing in Mexico with a strong client base of both issuers and acquirers, processing more than 10 billion transactions per year on their network. Under the acquisition agreement, Prosa’s existing shareholders including Banorte, HSBC Mexico, Invex, Santander Mexico, Scotiabank Mexico and Banjército will continue to own the remaining portion of the company.
About Visa Inc.
Visa (NYSE: V) is a world leader in digital payments, facilitating payments transactions between consumers, merchants, financial institutions, and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable, and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at http://visa.com/
This release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as “will,” “is expected,” and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make regarding the timing and likelihood of closing, Prosa’s future success, the impact of the acquisition on Visa’s growth, Prosa’s operational plans and the other benefits to Visa, Prosa, financial institutions, consumers, and the payments landscape in Mexico.
By their nature, forward-looking statements: (i) speak only as of the date they are made; (ii) are not statements of historical fact or guarantees of future performance; and (iii) are subject to risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from Visa’s forward-looking statements due to a variety of factors, including the timing and outcome of the regulatory approval process, shifts in the regulatory and competitive landscape, cybersecurity incidents, the pace and success of integration, and various other factors, including those contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, and our other filings with the U.S. Securities and Exchange Commission.
You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future developments or otherwise.
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Source: Visa Inc.