FIS, one of world’s largest providers of banking and payments technology solutions signed an agreement on Sept 3 to acquire Clear2Pay. Clear2Pay is known as a prominent international technology provider of next generation payment solutions pertaining to financial institutions. Post-acquisition, FIS would be able to deliver differentiated enterprise payments and testing solutions across multiple geographies.
Clear2Pay became popular in payments domain for its invention and subsequent development of the payment hub concept. The company’s Open Payment Framework (OPF) technology has been implemented by over a hundred financial institutions. The company boasts of 40 of 50 largest global financial institutions as its client.
FIS would be looking forward to leveraging testing capabilities of Clear2Pay’s card services business. FIS would also gain additional capabilities in contactless payments and in payment cards. Clear2Pay’s expertise in testing, implementing and managing European standards will help FIS build its operations in UK and Europe. There is no doubt that deal would bring true payment systems convergence to the industry.
Commenting on the acquisition by FIS, Michel Akkermans, CEO of Clear2Pay said: The payments landscape continues to evolve to meet the next generation of customer demands. We believe the combination of these two companies will be uniquely qualified to deliver true payment systems convergence.
Gary Norcross, president & COO of FIS said: The payments domain is one of the fastest-growing segments within the financial services industry and is a strategic growth and investment area for FIS. Many institutions are struggling to adapt to the evolving global payments landscape inclusive of high-value and cross-currency corporate payments and new channels. This strategic acquisition demonstrates our commitment to delivering the technologies and assets that will enable our clients, especially large and global institutions, to realize a truly modern payments environment that encompasses all customer channels, simplifies payment operations, reduces costs and provides a better customer experience.
FIS would be shelling out €375 Mn to attain 100% ownership in Clear2Pay. Clear2Pay helps financial institutions meet their payment goals through its pure SOA Open Payment Framework (OPF). The company facilitates banks, financial organisations in provision of payment services card-based, ACH and also international payment transactions. Clear2Pay helps reduce transactions processing costs and delivers new compelling payment services. Prime functions of the company include payments origination, reporting, linkage with backend processing systems, clearing, netting and settlement.
Clear2Pay also offers payment technology solutions and services like e-Banking, Open Test Solutions, ChargeBack, Strategic Consulting and training in payments field. Some major clients of the company include ING, Banco Santander, Crédit Agricole, BNP Paribas, The Federal Reserve, RBS, Commerzbank, The People’s Bank of China (PBOC), Bank of East Asia, Rabobank, Bank of New York Mellon and Commonwealth Bank.