Visa to Acquire Majority Stake in Mexican Payment Processor Prosa

Payments giant Visa has entered a definitive agreement to acquire a majority stake in Mexican payment processor Prosa in a bid to bolster the country's adoption of digital payments.

The deal, for an undisclosed sum, is expected to close in the second half of 2024 once regulatory approvals are secured and customary closing conditions are met.

As part of the agreement, Prosa will continue to operate as an independent entity and utilise its own technology, while Visa will help expand its product offerings and share knowledge and experience with Prosa's leadership — all of whom will be retained.

Eduardo Coello, regional president for Visa Latin America and the Caribbean, says the acquisition forms part of Visa's strategy to build a "network of networks' by bringing global technologies under its wing "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."

Through its investment, Visa hopes to bring traction to the Mexican payment market and enable its payments ecosystem to evolve and bring more services and solutions "to incentivise greater competition in the Mexican market for the benefit of consumers".

Over time, Visa also plans to roll out AI-led fraud risk management tools for a more secure transaction experience for consumers as well as merchants.

(Source: Fintech Futures)