Visa Bolsters Mexican Payments with Majority Stake in Prosa
Visa, a global leader in digital payments, is making significant strides in the world of payments with its recent announcement of acquiring a majority stake in Prosa, one of Mexico’s leading payment processors. This strategic move underscores Visa’s commitment to fostering innovation and efficiency in digital payments, and it has the potential to reshape the landscape of payments in Mexico.
Prosa: A Key Player in Mexican Payments
Prosa, with over five decades of experience, has been a pivotal player in processing payments within Mexico. Its impressive track record boasts processing over 10 billion transactions annually on its network, making it a cornerstone of the Mexican payment ecosystem. Notable shareholders in Prosa, including Banorte, HSBC Mexico, Invex, Santander Mexico, Scotiabank Mexico, and Banjército, will retain a portion of the company under this agreement.
A Strategic Vision: Empowering Consumers and Small Businesses
Visa’s mission in this acquisition is clear: accelerating the adoption of secure and innovative digital payments in Mexico. Combining Visa’s extensive global payment network with Prosa’s local expertise sets the stage for introducing innovative and secure payment solutions. Eduardo Coello, Regional President for Visa Latin America and the Caribbean, emphasised the importance of enhancing technology infrastructure to develop creative ways to pay and be paid for consumers and small businesses in Mexico. This collaboration can bring forth inventive ways for consumers and small companies to move money efficiently.
Prosa’s Autonomy and Enhanced Services
Under this agreement, Prosa will continue operating as an independent entity, maintaining its technology infrastructure and leadership team. However, Prosa will benefit from Visa’s expertise and resources to offer new services, including tokenised payments and near real-time fund transfers. This strategic partnership aims to provide consumers and small businesses in Mexico with cutting-edge payment options while also strengthening local issuers and acquirers.
A Bright Future for Mexican Payments
Visa’s investment in Prosa paves the way for more efficient and secure payment transactions in Mexico and encourages greater competition within the Mexican market. This competition will ultimately benefit consumers, offering them a more comprehensive range of payment options and enhanced services. Moreover, the collaboration between Prosa and Visa aims to empower micro and small businesses with new digital solutions, optimise their operations, and improve the cardholder experience.
A Promising Journey Ahead
While the acquisition is subject to regulatory approvals and customary closing conditions, Visa remains optimistic about the potential of this partnership. The second half of 2024 is the expected timeframe for the transaction to conclude. In the interim, Visa will work closely with stakeholders in the Mexican payment ecosystem, including regulators, current shareholders, and Prosa’s management and board of directors, to ensure a seamless transition.
Visa’s ‘network of networks’ strategy, driven by technology and innovation, is poised to impact Mexico’s payments landscape. With a focus on empowering consumers, small businesses, and the entire payment ecosystem, Visa’s investment in Prosa promises a brighter, more efficient future for digital payments in Mexico. This strategic collaboration sets the stage for a new era of payments in the country, offering inventive ways to move money securely and seamlessly. The synergy between Visa and Prosa holds great promise, and we eagerly anticipate the transformation it will bring to Mexico’s payment industry.
