In a move aimed at strengthening its hold on the Latin American market, Visa has announced that it is partnering with YellowPepper, one of the leading providers of mobile payment services in the region. The investment is aimed at accelerating the spread and adoption of new payment methods in the Latin America as well as the Caribbean.
Visa’s efforts of boosting digital capabilities
This investment is expected to significantly boost Visa’s efforts of enhancing digital capabilities in the region. The partnership will help in increasing access to Visa application programming interfaces (APIs), supporting increasing opportunities for tokenized payments and increase the use of push payments through Visa Direct.
As part of the deal, which is the first of its kind in the entire region, YellowPepper will assist Visa acquirers, issuers as well as merchants to implement solutions that deliver new payment experiences to customers. To be specific, YellowPepper will assist Visa in implementing particular solutions, which include UX design, project management services, as well as services for the development, as well as the delivery of mobile applications.
Visa may have landed on YellowPepper as the right partner to help advance this agenda in the region due to its long experience in the region. In addition, YellowPepper boasts of a big existing client base, which will offer Visa, with a firm foundation for the roll out of its payment business.
Following the agreement, YellowPepper will become the official Visa Token Service Provider, enabling it to issue Visa’s secure, digital payment token services, through any internet connect device.
Latin America is a strategic market for Visa as it has largely lagged behind in terms of adoption of mobile payments. The region is largely underpenetrated and hence offers enormous growth opportunities for Visa.
The latest investment is an addition to themulti-year partnership that the two companies signed in 2017. The move by Visa to invest in YellowPepper is part of strategy to open up its ecosystem globally, as well as support a wide range of new partners, that offer supporting services.
Visa is always evaluating and testing new technologies and platforms especially those that offer a lot of potential to develop digital payments for its customers and clients. In the past, Visa has partnered with Stripe, Square, solarisBank, Marqeta, Klarna and Chain among others.
Visa’s shares have gained 40% in the past one year compared to the 35% gain in the industry. The performance is an indication of its strong business growth as well as value accretion from the several partnerships and acquisitions.