(Bloomberg) -- Dock, a Brazilian fintech backed by Visa Inc., said it acquired Cacao Paycard Solutions SA de CV, a Mexico City-based card-processing solutions company.
Dock, which provides infrastructure for Latin American financial-technology companies, didn't disclose the price of the transaction.
The Sao Paulo-based company, which powers more than 40.9 million active accounts through its cloud-based platform, gains 50 Cacao clients through the takeover, including Mexican fintech Albo and unicorn payment firm Clip.
Expansion possibilities in Mexico are huge: Fewer than half the country's 130 million people have a bank account. The potential market for digital-banking infrastructure in the nation is $2.9 billion and is expected to grow 34% in the next 5 years, according to Americas Market Intelligence. Yet there are few service providers offering payments and digital-banking infrastructure, according to Dock Chief Executive Officer Antonio Soares.
Dock, which plans to use its own brand in Mexico, processes roughly $50 billion in payment volume across Latin America annually.
“The two companies share significant values and a core mission to enable their clients to democratize, through technology, access to the financial system for the millions of unbanked and underbanked people in Latin America,” Soares said.
Riverwood Capital and Visa were early investors in Dock, which received $170 million last year from firms including Singapore-based Temasek, Viking Global Investors and Advent International affiliate Sunley House Capital.
Cacao is Dock's third acquisition and its first outside Brazil. Last year, it purchased Muxi, a provider of technological solutions for capturing transactions in Latin America. In October, it bought BPP Instituicao de Pagamento SA, which specializes in non-banks looking to offer banking services to their customers.
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