TransNetwork Acquires Inswitch to Revolutionize Cross-Border Payments in Latin America
TransNetwork and Inswitch Join Forces to Revolutionize Cross-Border Payments in Latin America
San José, Costa Rica – May 19, 2024 – In a move set to reshape the financial landscape of Latin America, leading B2B payments infrastructure provider TransNetwork has acquired Inswitch, a prominent FinTech company specializing in embedded financial technology solutions. Announced on May 15th, this strategic acquisition marks a significant step forward for TransNetwork's development of a digital product suite tailored for efficient and secure cross-border payments,directly addressing the region's burgeoning demand for real-time financial services.
By combining TransNetwork's robust payments network and instant money movement capabilities with Inswitch's regional expertise and innovative API-based core platform, the newly formed entity ushers in a new era for cross-border payments in Latin America. Jorge Raull, Founder and CEO of TransNetwork, highlighted the transformative potential of the acquisition in a press release, stating, "This acquisition represents a major step towards enhancing our payments processing platform through the introduction of cutting-edge digital products and functionalities."
The powerhouse collaboration will offer a comprehensive suite of financial solutions, encompassing white-label digital wallets, cross-border and domestic payments, full-service issuance and processing for both physical and digital cards, and an extensive network encompassing various payment methods such as banks, card acquiring, cash, and digital wallets.This innovative approach empowers businesses and consumers across Latin America with secure, efficient, and convenient real-time financial transactions, fostering a more inclusive financial ecosystem.
"Through this acquisition, Inswitch becomes a critical pillar for TransNetwork's growth strategy in the United States and Latin America," stated Ronald Alvarenga, CEO of Inswitch. The transaction will further solidify Inswitch's regulatory framework and expand its payment rails across the region, fostering a more inclusive financial landscape.
This strategic move aligns perfectly with the burgeoning demand for digital-first financial services in Latin America. PYMNTS Intelligence reports a rapid shift amongst Latin American consumers, who are increasingly migrating from cash-based transactions to digital payment methods. Governments and businesses are actively working to meet this demand by implementing these technologies, as evidenced by the recent funding secured by Uruguayan FinTech company Prometeo to expand its multi-banking data and payment offerings.
TransNetwork's acquisition of Inswitch signifies a major step towards a more digitized and interconnected financial ecosystem in Latin America. This collaboration is expected to streamline cross-border transactions, promote financial inclusion by bringing the unbanked and underbanked into the formal financial system, and empower businesses and consumers with greater control and flexibility over their finances. With a focus on innovation, security, and accessibility,this strategic partnership has the potential to redefine the future of payments across Latin America, shaping a more inclusive and prosperous financial landscape for all.
