Global Payments, a worldwide provider of payment solutions, and Bank of the Philippine Islands (BPI), a commercial bank in the Philippines, have formed a joint venture to provide merchant acquiring and payment services in the Philippines.
The deal, which is expected to close late third quarter or early fourth quarter of 2015, will allow Global Payments to add significant merchants to its existing business in the Philippines besides endowing BPI with technological strengths enabling it to offer improved product and services to its customers.
Global Payments will put in its Philippines merchant acquiring assets and cash to the joint venture to obtain a majority interest in the partnership.
The 163-year old lender, BPI, will hold a 49% interest by contributing its existing merchant acquiring business to the joint venture.
Jeff Sloan, CEO of Global Payments, said: "This joint venture highlights our strategy to drive accelerating growth by expanding direct distribution in Asia."
Cezar Consing, president and CEO of BPI, remarked: "There is great growth potential in the payments industry and we look forward to continuing to build our capabilities to enhance the relevance and value we provide."