TransNetwork Acquires Inswitch to Facilitate Cross-Border Payments in Latin America

TransNetwork has acquired Inswitch to accelerate the development of its digital product suite for cross-border payments in Latin America.

The acquisition will add Inswitch’s regional expertise and its embedded financial technology solutions offered via an application programming interface (API)-based core platform to TransNetwork’s business-to-business (B2B) payments network and instant money movement capabilities, the companies said in a Wednesday (May 15) press release.

“With the acquisition of Inswitch, we at TransNetwork are taking a major step towards transforming the instant cross-border payments industry by enhancing our payments processing platform through innovative digital products and capabilities,” Jorge Raull, founder and CEO of TransNetwork, said in the release.

Together, the two companies will offer white-label digital wallets, cross-border and domestic payments, full-service issuance and processing of physical and digital cards, and a pay in and pay out network that includes banks, card acquiring, cash and wallets, according to the release.

The companies will work to digitize cross-border payments, facilitate the transition from cash to digital-first financial services, and provide access to safe and convenient real-time financial services, the release said.

“Through this acquisition, Inswitch becomes a strategic pillar to strengthen and grow TransNetwork’s business in the U.S. and Latin America,” Ronald Alvarenga, CEO of Inswitch, said in the release. “As a result of the transaction with Jorge Raull and TransNetwork, our regulatory framework and payment rails will continue to expand across the region.”

PYMNTS Intelligence has found that the digital payments ecosystem in Latin America is evolving rapidly, with consumers quickly moving from cash to digital alternatives.

In response to surging demand for digital-first and instant payment systems, firms and governments alike are working to provide these technologies to Latin American consumers, according to “Promising Payments: Digital Payments Gain Ground in Latin America,” a PYMNTS Intelligence and Galileo collaboration.

In another recent development in the region, Uruguay-based FinTech company Prometeo said in January that it raised $13 million in Series A funding to expand its multi-banking data and payments offerings in Latin America.

Prometeo’s embedded banking software platform enables global corporations to connect into the region’s financial systems in a way that is simpler, faster and more secure.