The Bank of the Philippine Islands (BPI) has entered a joint venture agreement with Atlanta-based payment service provider Global Payments Inc. (GPN) to strengthen its No. 2 position in the merchant acquiring industry.
Under the agreement, BPI said it will buy into GPN’s Philippine subsidiary, Global Payments Asia Pacific-Philippines Inc. (GPAP) by infusing its assets in merchant acquiring to effectively own a 49 percent stake in GPAP.
“Aside the strategic fit that BPI’s and GPAP’s complementary client portfolios provide, the joint venture is expected to further benefit from GPN’s robust infrastructure and global expertise, and BPI’s extensive network and significant merchant base,” the bank said in a statement on Wednesday.
Aiming to take advantage of the increasingly global nature of payment services, the partnership with GPN will allow BPI to enhance the customer experience for its merchant clients with an expanded suite of product offerings and a more advanced technology platform.
“This joint venture marks an exciting new phase for the country’s merchant acquiring space. There is great growth potential in the payments industry and we look forward to continue building our capabilities to enhance the relevance and value we provide to our customers,” BPI President and Chief Executive Officer Cezar Consing, said.
Consing added that BPI believes that the partnership will deliver superior technological and operational efficiencies to the benefit of its customers.
“We are delighted to form this strategic partnership with BPI in the Philippines,” Jeff Sloan, Global Payments, chief executive officer, said on the other hand.