Visa is to acquire payments technology firm YellowPepper in an effort to extend its influence across the region and the Caribbean.
Founded in 2014 and operating in nine Latin American countries, the Miami-based company currently serves 50 clients and 5 million monthly active users.
The acquisition builds on an earlier partnership and investment in YellowPepper's $12.5 million Series D round in 2018.
Earlier this year, the two companies collaborated on a real-time P2P payments system in Peru on behalf of Scotiabank, BBVA, and Interbank. By combining Visa Direct capabilities with YellowPepper’s proprietary Alias Directory, Customer Identity profile and Smart Routing tools, the system enables customers to use an email, phone number or other personal credential to exchange money via their bank using a payment option of their choice.
Ruben Salazar, head of innovation and products for Visa Latin America and the Caribbean, says: “With our acquisition of YellowPepper we will make it easier for clients to enable new use cases and expand our value added services, such as tokenization, multi-rail integration, identity validation, authentication and risk tools to deliver an integrated user experience.”
The YellowPepper platform offers a set of APIs to enable issuers, processors and governments to access multiple payment rails through a single connection. It also enables an easier integration to Visa Direct, Visa’s real-time push payments platform, Visa B2B Connect, Visa’s non-card-based payment cross-border B2B network, and value added services.
Eduardo Coello, regional president for Visa Latin America and the Caribbean, says: “YellowPepper’s technology, which acts like a ‘universal adapter’, will be key to build on our ’network of networks’ strategy to become a single point of access for initiating any transaction type and enabling the secure movement of money.”
The size of the transaction was not disclosed.