Raiffeisen buys Ukrainian card payment processor

Raiffeisen buys Ukrainian card payment processor

Austrian banking group Raiffeisen International has acquired Ukrainian Processing Centre (UPC), a provider of card transaction processing services, for an undisclosed sum.

UPC was founded in 1997 with the aim to support the development of international and local non-cash payment systems in the region. The independent centre provides services including authorisation of international and local payment card transactions, technical support for POS terminals, ATM network development and regional interbank clearing, to more than 20 Ukrainian banks.

Raiffeisen says the use of payment cards is rapidly growing in Ukraine - according to stats from the National Bank of Ukraine for the first quarter of 2005, the number of transactions grew by 40% compared to the same period of the previous year.

Commenting on the deal, Heinz Wiedner, COO, Raiffeisen International, says the purchase will provide the bank with the technical ability to support its expanding card business in the region.

Vienna-based Raiffeisen said last month it was expanding into Ukraine with the acquisition of Bank Aval.

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