Pismo is reportedly valued at about $1 billion.

Mastercard (NYSE: MA) and Visa (NYSE: V), two of the largest payment processing companies in the world, are reportedly in negotiations to purchase Brazilian fintech firm Pismo. The company provides cloud-based payment and banking platforms and is currently valued at around $1 billion. According to sources familiar with the matter, Pismo is working with Goldman Sachs (NYSE: GS) on a sale, and the interested parties include a bank and private equity funds. (Bloomberg)

However, an agreement has not been reached, and the talks could still end without one. Pismo’s investors include SoftBank Latin America Fund, Amazon.com, Falabella Ventures, and Redpoint eventures.

The company’s clients include Itau Unibanco Holding SA and Banco BTG Pactual.

Through Pismo’s platforms, banks and fintech companies can rapidly introduce products for digital banking, cards and payments, digital wallets, and marketplaces. The acquisition of the Brazilian fintech would be a significant move for both Mastercard and Visa as they look to expand their offerings and tap into the growing fintech market. However, representatives for Pismo, Mastercard, Visa, and Goldman Sachs refused to comment on the matter.

According to insiders, Visa submitted a second offer to buy Pismo last week, valuing the fintech firm at $1.4 billion. This news was reported on Valor Economico’s website Pipeline.

It remains to be seen whether the talks will result in an agreement, but if they do, it could signal a significant shift in the payment processing industry.

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