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In a move that signals its ambition to expand into cloud-based banking and payment services, Visa is reportedly looking to buy Pismo, the Brazil-based FinTech firm. According to reports, Visa has upped its bid from $1 billion to $1.4 billion for Pismo, which offers cloud services to banks and boasts a global footprint.

Sources indicate that MasterCard is also bidding for Pismo as competition heats up. Visa has not made an official or public comment regarding the reports and speculation about a potential deal. Similarly, Pismo has also refrained from making any statements.

Pismo is among the leading cloud-based banking and payment solutions providers, processing 74 million accounts and 38 million cards.

Also read: Mastercard buys identity verification company Ekata

Providing an edge over legacy solutions

Pismo has been focusing on developing next-generation solutions using banking application programming interfaces (APIs) and platforms, enabling other firms to launch solutions without rebuilding legacy infrastructure.

Speaking to PYMNTS last year, Pismo’s CEO, Ricardo Josua, explained how the company’s technology had been tested at full volumes with prominent financial services players, providing a competitive edge against firms that use legacy solutions or untested technologies.

Earlier this month, Pismo unveiled a lending tool enabling financial institutions to create tailor-made lending solutions using various combinations, saving time and effort.

Competition is still intense

According to the latest edition of the “Embedded Finance Tracker®,” a collaboration between PYMNTS and Galileo, 25% of bankers consider banking-as-a-service (BaaS) technology solutions a crucial opportunity to grow revenue.

The acquisition of Pismo would enable Visa or Mastercard to further its ambition in the BaaS arena and broaden its cloud-based services offerings. While the competition for Pismo remains intense, Visa’s move clearly indicates its determination to strengthen its foothold in the increasingly lucrative world of cloud-based banking and payments. The question is, who is willing to pay more for Pismo, Visa or Mastercard?