Payment Cloud Technologies and Tuxedo Money Solutions have agreed merged their operations in a €70m ($81m) deal.
The new combined company will be known as Omnio Group and will provide cloud-based banking and payment services.
The Payment Cloud Technologies and Tuxedo merger also involves banking inclusion company The Change Account. In addition, airline compensation specialist Travel Welfare will go into Omnio Group.
Omnio Group CEO Ian Clowes said: “We are really excited to bring together two of the leading companies in the banking and payments market.
“By combining our capabilities, we not only have the scale to compete globally – we can also leverage our technology investments to offer new solutions and products.”
Omnio will offer a digital banking platform to support product development and market entry through an omni-channel approach.
The company will also help financial entities to enhance their digital offerings in order to retain and increase consumer strength with multiple products.
It will also continue to invest in cloud-based fintech to bolster its banking and payment capabilities.
Clowes added: “We will continue to focus on delivering digital cloud-based banking and payment platforms that radically disrupt the financial services market, allowing both established players and new entrants to embrace the digital revolution in financial services.”
Regulated in the UK, Europe and Australia, the Omnio Group processes more than €1bn payments annually as well as manages more than two million active accounts.