Brazil is emerging as one of the more digital native emerging markets ever since the launch of the instant payment rail PIX in 2020. But PIX is not the only byproduct of a rapidly innovating Brazilian fintech sector.
Pismo, a payment processing and banking technology firm, has been championing the moe for next-gen banking solutions. It has since attracted the attention of Visa, who acquired the company for $1bn in 2023.
Discussing the Visa acquisition, Pismo’s digital banking solutions, and more on AI, PIX and digital wallets, Daniela Binatti, Co-Founder and CTO of Pismo, spoke to Payment Expert.
Payment Expert: Firstly Daniela, it’s been over a year since the Visa acquisition. How has Pismo been able to expand its standing across South America and globally leveraging Visa’s reputation?
Daniela Binatti: Yes, we celebrated one year in mid-January. The integration with Visa has been remarkable. We aimed to leverage Visa’s expertise to enhance our go-to-market strategy, and sharing our engineering-led approach has been insightful.
PE: Can you outline some of the benefits of Pismo’s cloud-native API platform and does the company look to expand this service to markets it is yet to be launched?
DB: There is a demand from financial institutions around the world to update legacy core banking systems to cloud-native systems.
Pismo was created with a future-proof microservices architecture to provide real-time capabilities and integrate multiple services on a single platform. This allows clients access to a cloud-native core, reduces risks, and prepares for the future.
We aim to expand Pismo’s offerings to clients in more than five countries across four regions.
PE: Over the past several years, what are some of the most popular digital wallets amongst Brazilian and South American customers and what qualities do they possess that differentiate themselves from one another?
DB: In my opinion, customer centricity is essential for any financial institution to succeed and differentiate itself in the market. Services and products should be defined by the final customer’s needs and wishes.
Access to real-time data enables financial institutions to engage with clients based on insights, allowing customers to receive the product or service they need when needed. Financial institutions that invest in systems providing access to real-time data, such as those offered by Pismo, are gaining popularity and achieving success.
PE: Since its launch in 2020, how would you assess PIX’s impact on how Brazilians perform payments and has it brought about more financial inclusion opportunities?
DB: The Central Bank has significantly fostered financial inclusion with PIX by integrating unbanked and underbanked individuals into the formal financial system, thereby benefiting small businesses and informal workers.
We recognise the considerable potential of PIX to revolutionise payment methods in Brazil and we are investing in advanced technologies to maximise the opportunities presented by PIX.
Collaboration with private sector entities and effective competition are essential to addressing challenges, such as fraud and security vulnerabilities, by enhancing security and functionality.
PE: With Brazil’s lending economy growing year on year, what alternative digital lending options does Pismo provide to enable maximum flexibility for its customers?
DB: Pismo does not operate in the market by offering loans, but rather by providing technological solutions that can assist companies that offer loans.
Pismo provides a comprehensive platform based on microservices and APIs. This setup enables clients to select and deploy the tools needed to develop their own products and services, such as lending options for end-users.
This approach allows financial institutions to tailor their value propositions according to their client’s preferences and requirements. Introducing a new product can now be achieved in weeks rather than months, compared to traditional legacy systems.
Additionally, these products are continuously updated with real-time data, facilitating the use of AI for immediate insights into customer behavior and needs.
PE: Could you give an overview of how AI is being handled in Brazil at the moment when it comes to processing payments. What do you believe the technology can achieve within the wider fintech sector in the country over the coming years?
DB: AI represents a significant global trend. What I have seen, similar to many other sectors, the use cases implemented thus far are the evident ones: fraud detection, risk management, and back-office processing, alongside other productivity efficiencies.
The application of AI in more innovative ways hinges on the quality of available data. Many traditional financial institutions are still transitioning from legacy systems. Currently, when a new feature is deployed or a regulation changes, the entire system requires comprehensive review and testing.
With a nimble and flexible infrastructure, financial institutions can accomplish this within days rather than months. This advancement will also transform how these institutions collect and interact with their customers’ data. At that point, AI can then become a revolutionary force.
PE: Lastly Daniela, and thank you for your time, what does 2025 look like for Pismo? What markets is the company looking to expand in and are there areas that the company would like to embrace for the first time?
DB: We anticipate 2025 to be a significant year for Pismo. We plan to continue expanding our global presence, as our system was designed from the outset to be agnostic and easily customisable to any country or region-specific compliance and regulations.
