MANILA – The Bank of the Philippine Islands (BPI) on Wednesday said it has entered into an agreement with Global Payments Inc. (GPN) to strengthen its merchant acquiring business.
In a disclosure to the stock exchange, BPI said it will buy into GPN’s Philippine subsidiary, Global Payments Asia Pacific-Philippines Inc. (GPAP), by infusing its assets in merchant acquiring to effectively own a 49 percent stake in GPAP.
“Aside from the strategic fit that BPI’s and GPAP’s complementary client portfolios provide, the joint venture is expected to further benefit from GPN’s robust infrastructure and global expertise, and BPI’s extensive network and significant merchant base,” the bank said.
The partnership with GPN will allow BPI to improve customer experience for its merchant clients through an expanded suite of product offerings and a more advanced technology platform.
“This joint venture marks an exciting new phase for the country’s merchant acquiring space. There is great growth potential in the payments industry and we look forward to continue building our capabilities to enhance the relevance and value we provide to our customers. We believe that this partnership will deliver superior technological and operational efficiencies to the benefit of our customers,” said BPI president and chief executive Cezar Consing.
Global Payments chief executive Jeff Sloan, meanwhile, said the joint venture aligns well with the payment services provider’s business strategy to drive sustainable growth by expanding strategic relationships and distribution in Asia.
“This new partnership will allow us to leverage our strengths and provide a superior product and service offering in the Philippines, the fastest growing market in Asia,” he said.
The joint venture is still subject to regulatory approval and the satisfaction of customary closing conditions. BPI Capital served as the financial advisor to BPI for the transaction.
GPN, headquartered in Atlanta, Georgia is a Fortune 1000 company that offers a comprehensive line of solutions and services for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management.