AIB is set to acquire Payzone through a joint venture with First Data
The joint venture will acquire 95.9% of Payzone, which is an Irish fintech payments business. Furthermore, AIB will own 75% and First Data will take 25%.
The venture will acquire the ownership interest in Payzone from existing shareholders. These include Carlyle Cardinal Ireland Fund for an enterprise value of up to
Payzone is a provider of specialised payment services in Ireland. It supports consumer payments by cash, card and also card-not-present for every day consumer needs. It also has a suite of online and mobile payment solutions servicing in excess of 300,000 registered consumers. Furthermore, this covers over 7,000 retail outlets throughout Ireland.
Furthermore, Payzone will continue to be led by CEO, Jim Deignan, and CFO, Nigel Bell. Both will remain as shareholders in the business.
Chief executive officer of AIB, Colin Hunt, commented: “For AIB, this transaction means acquiring significant fintech capability and Payzone’s substantial payments footprint in Ireland. This will allow AIB to continue to evolve and enhance our customer offering, enable us to pioneer digital ecosystem products and services and represents growth potential.
“We are delighted to partner again with First Data Corporation in setting up this new joint venture and look forward to working with Payzone management to further build on their success.”
AIB acquisition of Payzone
The potential AIB acquisition is consistent with the group’s strategy to make selective investments to evolve customer service and product proposition.
It will bring significant fintech capability to AIB. Furthermore it will strengthen the bank’s digital agenda going into a PSD2 and open API environment.
Managing Director of Consumer Banking at AIB Robert Mulhall, commented:
“Building on over 10 years of successful strategic partnership, AIB and First Data have agreed to acquire Payzone, Ireland’s largest retail payment services network, conditional on the satisfaction of customary conditions including competition clearance. This will be the second joint venture company created by AIB and First Data, following the creation of AIB Merchant Services in 2008 which is today Ireland’s largest merchant services company and the fourth largest e-Commerce transaction acquiring company in Europe.
“AIB has seen very significant growth in digital payments, with volumes up over 67% year on year, driven largely by the migration by consumers away from cash to more frictionless payment methods. A key driver of this change has been the adoption of AIB’s market leading digital wallet capability which includes Apple Pay, Google Pay, Fitbit Pay and Mobile Open payments which make up 1.5 million payments per month.”