Australia's Cuscal is to acquire Strategic Payments Services, a payment processing joint venture launched by Bendigo Bank and MasterCard in 2006, as it strives to carve out a position in the emerging mobile and digital payments market.
The $37.4 million deal will combine Cuscal's and SPS's complementary strengths in issuing and acquiring and represent approximately 10% of the Australian electronic funds transfer (EFT) market
Managing director of Cuscal, Craig Kennedy, says: "The future of payments is about real time, mobile and data. This synergistic acquisition will complete our capabilities in the current environment and prepare us for where the market is heading."
Cuscal earlier this year launched Asia-Pacific's first mobile Host Card Emulation (HCE) payments app redi2PAY and has announced support for the introduction of Apple Pay on the new iPhone models.
Says Kennedy: "Integrating with SPS means we can sharpen our focus and investment in research, development and delivery of market leading technology, as well as continue to offer emerging players a neutral platform to operate from."
Under the deal, Bendigo Bank and MasterCard will take an approximate 10% stake each of the final combined entity. The transaction is expected to complete by the end of the year, subject to shareholder approval at Cuscal's November AGM.