It’s A Wrap: Visa Completes Purchase Of Latin American FinTech YellowPepper

Visa has wrapped up its acquisition of Latin American FinTech YellowPepper, the first deal of its kind by the financial giant in the region.

In an announcement of completion of the deal, Visa said it will accelerate the global payments and credit card company’s “network of networks” strategy.

Under that strategy, Visa is pushing to become a “single point of access for initiating multiple transaction types” while also laying the foundation for the “secure movement of money.”

In particular, YellowPepper and its “rich set of APIs” will enable “issuers, processors and governments to quickly and securely access multiple payment rails for many payment flows through one single connection,” Visa said.

Terms of the deal were not disclosed.

“Bringing YellowPepper into the Visa family will help us build on our ‘network of networks’ strategy, by combining Visa’s proven technology, processing and security capabilities with the complementary solutions of YellowPepper, to ultimately help support the current and future needs of governments, banks and consumers around the world,” said Eduardo Coello, regional president for Visa’s operations in Latin America and the Caribbean.

Visa said its acquisition of YellowPepper, in turn, could help to reduce the cost by issuers and processors to launch new financial services, as well as paring back on the amount of time needed.

Through YellowPepper and its APIs, “clients will be able to enable new use cases and expand Visa’s value-added services, such as tokenization, identity validation, authentication and risk tools,” Visa noted in its press release.

And the acquisition will also enable ease integration with Visa’s real-time push payments platform, Visa Direct and Visa B2B Connect, Visa’s “non-card-based cross-border B2B payment network,” the company noted.

Karen Webster recently caught up with YellowPepper Founder and CEO Serge Elkiner to discuss in detail the deal with Visa and some of the challenges facing the sector.