Payment processing for merchants under a new alliance

[img_assist|nid=8280|title=|desc=|link=none|align=left|width=100|height=64]A new JV company is being formed in the UK under the partnership between HSBC and Global Payments. The joint venture is generated out of HSBC’s card merchant acquiring business in the UK.

The mission of the newly formed JV is to provide payment processing services to customers in the UK and to online traders across the globe.

The agreement is expected to be completed within two months. As per its terms a 51% majority stake in the JV is to belong to Global Payments which is going to pay HSBC $439 million in cash. The joined venture was decided to be named HSBC Merchant Services. Three seats in the JV will belong to Global Payments while two seats will be owned by HSBC holding.

The remnant 49% stake will respectively be handed to HSBC which in turn is going to contribute its existing merchant acquiring business in the UK to the joint venture, including the unit's 400 employees. As of present time the division is providing payment card processing services to over 135,000 merchant outlets in the UK.

Among numerous objectives of the JV there is the operation in Internet business segment. According to Global Payments on account of HSBC's extensive worldwide footprint, the new company will have the capability to provide Internet-based merchant acquiring services in at least 37 countries and 35 currencies.

Further prospect of the company is availing of the single euro payments area (Sepa) and servicing European business area.

"We expect to focus on growing the customer base by providing an expansive range of card payment solutions. Longer-term, with the adoption of the single euro payments area initiatives, we expect to be in an excellent position to provide seamless acquiring services to merchants throughout Europe," says Paul Garcia, chairman, president, and CEO, Global Payments.