The acquisition builds on a strategic partnership and investment made in 2018, where Visa invested in the company back then.
With YellowPepper, companies can access application programming interfaces (APIs) to allow issuers, processors and governments to easily access numerous payment rails and let multiple payment flows through one single connection, according to the release.
With the acquisition, Visa hopes to boost its ‘network of networks’ strategy, reducing the time to market and costs for issuers and processors who need to access innovative operating solutions, the release says. YellowPepper will help integrate more easily with Visa Direct, Visa’s real-time push payments platform, Visa B2B Connect, its non-card-based B2B network and value-added services.
Earlier this year, in one example of the partnerships fostered through Visa and YellowPepper’s team-up, the companies initiated a real-time platform in Peru to develop PLIN, a peer-to-peer (P2P) solution with Scotiabank, BBVA and Interbank, letting consumers use an email or phone number to exchange money.
The acquisition will “accelerate Visa’s ability to create innovative and accessible digital payment solutions that empower consumers and businesses, allowing them to thrive socially and economically,” said Eduardo Coello, regional president for Visa Latin America and the Caribbean, according to the press release. “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.”
Ruben Salazar, Visa’s senior vice president and head of product and solutions for Latin America, told PYMNTS recently that the company is working on new collaborations to expand how customers can use rewards. In Latin America and many other parts of the world, loyalty has become paramount for customers who want to pay how they want and at any time.