BankServ acquires Magex P2P payment platform

BankServ acquires Magex P2P payment platform

San Francisco-based e-payments outfit BankServ has acquired the person-to-person and mobile payments business of London-based Magex Holdings.

BankServ says the acquisition of the Magex hosted payments service and m-payments product is part of its strategy to enter the growing field of electronic person-to-person payments.

The technology was acquired from London-based Magex Holdings, which was founded in August 1998 by NatWest Card Services. In April 2000, Magex established itself as a separate, independent company after raising US$80 million in its first round of equity funding from major investors including Royal Bank of Scotland, Goldman Sachs and Capital Z Partners.

The managed payments platform allows consumers to exchange funds over the Internet. It was initially deployed by NatWest as part of its failed FastPay service. The system is currently being used by Zopa, an online person-to-person lending and borrowing exchange with more than 90,000 members in the UK.

Magex's mobile payments product enables customers to use their hand sets to send and receive funds. This product is used by Zafa in Saudi Arabia as part of a comprehensive electronic payments network. BankServ says it is looking to adapt the same technology for use with mobile phones in the US.

BankServ says the deal also gives it access to the Bacs network for ACH payments in the UK as a complement to its similar standing with the National Automated Clearing House Association in the US.

David Kvederis, BankServ's president and CEO, says the P2P payments business has a very promising future.

"Electronic payments are becoming increasingly accepted as an important and convenient tool by the general public," says Kvederis. "BankServ has strengthened both its product line and its international presence."

Comments: (0)

Trending Stories

Featured Job
All Jobs »
London, UK

Senior Sales, Collateral Management Solutions (London, covering EMEA)

Competitive base + bonus + benefit package

22 Jul