Visa Launches Payments Processing Venture With Yalamanchili Software

Visa and Yalamanchili Software Exports, a payments processor and software products and solutions company with operations in India and Singapore, have formed a joint venture that will allow Visa to extend its processing capabilities in some of the fastest-growing payments regions in the world.

Visa will have a controlling interest in the joint venture, named Visa Processing Service (VPS). It begins operations this week and will serve existing processing clients. VPS will serve clients in select markets and address opportunities outside the US and Europe. It complements Visa’s Debit Processing Service.

Initially, the joint venture will focus on providing financial institutions, processors and other payment companies with prepaid and debit processing solutions. Like Visa, VPS will also have capabilities to provide credit, ATM, money transfer and private label processing, as well as a range of payments services, including risk and fraud management, mobile applications, loyalty and cardholder support.

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“Payments processing is critically important to Visa’s long-term success as we seek to deliver increased value to our clients, accelerate our growth and diversify our sources of revenue,” said Joseph W Saunders, chairman and CEO of Visa. “Visa Processing Service will allow us to immediately and cost-effectively enter new geographies with a scalable and high-quality processing offering. Based on our success in the United States, we know that issuer processing is a critical component of an integrated debit strategy. Processing capabilities enhance Visa’s ability to see and analyse each transaction, providing greater opportunities to add value for financial institutions, cardholders and merchants.”

As part of the joint venture agreement, Visa will incorporate Yalamanchili’s technology with Visa’s payments experience and existing processing infrastructure. Yalamanchili will provide its suite of NARADA Software Products – a multi-currency, multi-language platform for debit, prepaid and credit payment transactions; gateway services for international and domestic networks; and acquiring applications, including ATM terminal driving.

“We have enjoyed a strong working relationship with Visa for quite some time and look forward to partnering with them on the formation of Visa Processing Service,” said Y Ramakrishna, founder and managing director of Yalamanchili. “Together, we will complement each other’s strengths and be able to provide financial institutions with an international processing offering that includes expanded product offerings.”