29 March 2015

Global Payments acquires remaining 49% stake in HSBC Merchant Services JV

12 June 2009  |  10517 views  |  0 HSBC sign

US transaction processor Global Payments has acquired the remaining 49% interest in its merchant services joint venture in the United Kingdom from HSBC Bank for $307.7 million in cash.

The buy-out comes a year after the two formed the HSBC Merchant Services JV to provide payment processing services to merchants in the United Kingdom and Internet merchants globally. At the time, Global Payments paid HSBC $439 million in cash to acquire a 51% majority stake in the bank's UK card merchant acquiring business.

Under the new agreement, HSBC will extend the current ten-year exclusive marketing alliance agreement whereby the bank provides merchant referrals and bank sponsorship to Global Payments to June 2019.

Global Payments' chairman and CEO, Paul Garcia says: "Our performance in the United Kingdom this year has provided a strong foundation for long-term growth, as we continue to provide a wide range of high-value payment solutions and world-class service to merchants."

Global Payments and HSBC already work together in North America and Asia. In 2005 Global Payments paid the bank $67.2 million in cash for a 56% interest in a payments processing joint venture covering 10 countries and territories in Asia.

Noel Quinn, HSBC's UK head of commercial banking, says of the transfer: "We are focused on ensuring that our commercial banking relationships benefit from a combination of HSBC's core service capabilities, including our international distribution, and from high quality support services."

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

25 March, 2009
01 December, 2008
04 August, 2008
17 June, 2008
15 August, 2007
08 September, 2005

Related company news


Who is commenting?

Top topics

Most viewed Most shared
Banking has reached a digital tipping poin...
9635 views comments | 53 tweets | 30 linkedin
Europe sets the pace as fintech investment...
5145 views comments | 28 tweets | 19 linkedin
Google preps Gmail bill payment feature
4539 views comments | 13 tweets | 12 linkedin
Barclays and PayPal join Government ID acc...
4358 views comments | 10 tweets | 11 linkedin
Credit Suisse paper offers qualified bitco...
4107 views comments | 5 tweets | 9 linkedin

Featured job

Competitive Package
London or Frankfurt

Find your next job