Card company Visa announced this morning that it has raised its offer for United Kingdom payments processor Earthport to 37p per share, valuing the business at £247 million.
Earthport's shares have grown by more than five-fold since Visa's initial offer and rose to 42p in the wake of the US-based card network's latest bid on Friday.
Commenting on today's increased Visa offer, Sunil Sabharwal, interim chairman of Earthport, said: "The board of Earthport is pleased to recommend Bidco's cash offer for Earthport which is at a 12% premium to the Mastercard proposal".
It is an advance on its previous offer of 30p per share and follows a January bid from Mastercard of 33p.
Mastercard issued an immediate statement saying that it was "considering its options" and it urged Earthport shareholders to take no action.
Visa said it has the backing of around 17% of Earthport shareholders for its offer.
In the last two years, payment processing has become one of the most essential areas for deal-making. It is driven by technological changes in the way that the consumers pay for products.
Last year, the shares of Earthport dropped by 28 percent until the first bid.
The company offers a lower-cost option to traditional payments systems by allowing banks and money transfer firms to have a single relationship instead of multiple ties with various payments channels around the world.