Amid the global explosion of e-commerce and demand for digital money transfers, Visa is acquiring YellowPepper to help drive tokenization and real-time payments in Latin America.
Visa’s purchase of YellowPepper will help it accelerate its “network of networks” strategy by reducing the implementation cost and time-to-market for new payments solutions for issuers and processors in Latin America.
YellowPepper’s platform enables financial institutions to launch account-agnostic solutions that include tokenization, virtual cards and push payments. Demand for more secure mobile commerce solutions is being fueled by a strong growth in smartphone ownership in Latin America, as well as fears over shopping in-stores as
The acquisition of YellowPepper builds on a prior 2018 investment of $12.5 million by Visa in
“Over the last three years, we have partnered closely with YellowPepper to deliver innovative solutions to clients in the region,” said Ruben Salazar, head of innovation and products for Visa Latin America and the Caribbean in the release. “As these solutions scale to other markets, aligning more closely with YellowPepper and combining our businesses is a natural extension of our relationship. Together, we can offer a flexible and low-cost platform in order to connect to multiple networks for new flows throughout Latin America and beyond.”
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Prior to the acquisition by Visa, YellowPepper had raised over $51.5 million in funding in six rounds since 2010, according to
YellowPepper provides real time payments, push payments with Visa Direct and Mastercard Send, Ripple as well as ACH. It provides tokenization services using Visa’s Token Service and Mastercard’s Digital Enablement Service. YellowPepper also offers identity solutions that include an alias directory and a payments vault.
Based in Miami and founded in 2004,
A key driver behind Visa’s interest in fueling the next generation of payments in the Latin American markets is the rapid growth of smartphone ownership by young consumers, ages 18-34 years old which has begun to approach U.S. ownership rates, according to a