MANILA, Philippines–Ayala-led Bank of the Philippine Islands seeks to boost its payment processing business through a partnership with Global Payments Inc. (GPN), a leading payment services provider based in Atlanta, Georgia.
BPI entered into an agreement to buy into GPN’s Philippine subsidiary, Global Payments Asia Pacific-Philippines Inc. (GPAP). This will give BPI a 49-percent stake in GPAP.
Merchant acquirers generally perform four key functions for the processing of credit or debit transactions on behalf of merchants: signing up and underwriting merchants to accept network-branded cards; providing the means to authorize valid card transactions at client merchant locations; facilitating the clearing and settlement of the transactions through the payment network; and providing relevant information services, such as sending out statements.
The joint venture is seen to strengthen BPI’s position in the Philippine merchant acquiring industry where it was currently the second-largest player in this segment.
Aside from the strategic fit that BPI’s and GPAP’s complementary client portfolios provide, the joint venture is expected to benefit from GPN’s robust infrastructure and global expertise alongside BPI’s extensive network and significant merchant base, the bank said in a disclosure.