HSBC is to transfer its credit card merchant acquiring businesses in 10 countries and territories in Asia to a new joint venture company formed with transaction processor Global Payments.
Under the agreement, Global Payments will pay HSBC $67.2 million in cash for a 56% interest in the joint venture.
HSBC will control the remaining 44% and has agreed to a ten-year marketing alliance referring new merchant customers for payment processing services in ten Asia-Pacific countries and territories, including Brunei, the Hong Kong SAR (Special Administrative Region), India, the Macau SAR, mainland China, Malaysia, Maldives, Singapore, Sri Lanka and Taiwan.
Global Payments is anticipating strong growth in the business, particularly in emerging regions of India and China.
Michael Smith, HSBC president and CEO says. "The joint venture will have the combined benefit of HSBC's large and extensive footprint in the region as well as Global Payments' technological expertise."