Visa to acquire majority stake in Mexican payment processor, Prosa

Visa has entered into an agreement to acquire a majority interest in Prosa; a payments processor in Mexico. The agreement announced on Friday (15thDecember) is sought to expand digital payment adoption in the South American country.

As part of the arrangement, Prosa will continue operating as an independent company with its own infrastructure. However, Visa is set to expand the the payments processor’s offerings with new digital solutions. This is in addition to sharing its knowledge and experience in managing a global network.

Prosa’s infrastructure facilitates over half the payments in Mexico. Indeed, it is one of the largest payment processors in Latin America; processing about 4.7 billion transactions in 2020. Notably, it is owned by a consortium of banks that include Banco Santander, HSBC, and Grupo Financiero Banorte.

In a news release, Visa’s Regional President for Latin America and the Caribbean, Eduardo Coello stated, “…this investment is part of our ‘network of networks’ strategy where we leverage best-in-class technologies from the world 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 customers and small businesses alike alongside local issuers and acquirers in Mexico.”

In recent weeks, Rosa’s sale process has been underway. While a deal isn’t guaranteed, the company has attracted a significant number of large fintech and payment companies. In the recent past, firms processing digital payments in Latin America have caught the attention of investors as more companies seek to enter the rapidly expanding market.