Visa acquires Prisma and Newpay

Visa has agreed to acquire Argentine payments firms Prisma and Newpay, marking a strategic push into the Argentine market. Visa aims to capitalize on the growing adoption of digital payments in the region, which has shown robust growth potential. The transaction, expected to close within the current quarter, remains subject to customary closing conditions.

Prisma and Newpay are subsidiaries of Group Prisma, a payments company that underwent a strategic transformation under majority owner Advent International. Prisma specializes in credit, debit, and prepaid card processing, while Newpay provides real-time payment services, operates an ATM network, and offers a bill payment platform. The financial details of the transaction have not been disclosed.

The acquisition aligns with Visa's strategy to strengthen its technological offerings in Argentina. By integrating these platforms, Visa plans to enhance its capabilities in tokenization, biometric authentication, and other advanced payment technologies. Visa CEO emphasized the acquisition's role in fortifying client partnerships and promoting innovation in Argentina's payments ecosystem. The deal is also expected to facilitate the expansion of digital payment adoption and the modernization of financial services infrastructure across the country.

This acquisition comes at a time when Visa is observing substantial growth in tap-to-pay transactions within Argentina. The company reported double-digit growth in face-to-face transactions in the region recently. By assimilating Prisma and Newpay's services, Visa aims to consolidate its presence in an emerging market that Advent International identified as poised for strong growth when it acquired a majority stake in Prisma in 2019.

The deal may set a precedent in the rapidly evolving payments landscape in Latin America. While Advent retains ownership of Payway, the third platform of Group Prisma, it recognizes Visa's capability to drive the ongoing evolution and success of Prisma and Newpay. The focus will stay on securing regulatory approvals swiftly to finalize the transaction, allowing Visa to leverage these assets for sustained growth in the Argentine payments sector.