Global Payments Inc., one of the largest providers of payment solutions, and Bank of the Philippine Islands (BPI), a leading commercial bank in the Philippines, recently announced an agreement to form a joint venture to provide merchant acquiring and payment services in the Philippines. BPI is one of the largest banks in the Philippines with more than 800 branches. The bank has operated a merchant acquiring business for over 27 years.
Global Payments will contribute its Philippines merchant acquiring assets and cash to the joint venture to secure a majority interest in the partnership. BPI will contribute its existing merchant acquiring business to the joint venture and hold a 49 percent interest. Global Payments offers a comprehensive line of solutions and services for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management.
BPI offers a wide spectrum of financial services to both retail customers and corporate clients through the bank's extensive distribution network locally and abroad. BPI serves 6.8 million customers through its network of more than 800 branches, over 2,500 Automated Teller Machines (ATMs) nationwide and close to 30,000 Point-of-Sale (POS) terminals. BPI will be ideal medium for Global Payments to enter into Philippines’ payments market.
Jeff Sloan, Chief Executive Officer of Global Payments, said in an official press release: "We are delighted to enter into this partnership with BPI in the Philippines, one of our fastest growing markets. This joint venture highlights our strategy to drive accelerating growth by expanding direct distribution in Asia. It will also allow us to add significant merchants to our existing business in the Philippines, further leverage our technological strengths and provide superior product and service offerings to BPI customers in a highly attractive market".
Cezar Consing, President and CEO of BPI, said in an official press release: "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 continuing to build our capabilities to enhance the relevance and value we provide. We believe that both our shareholders and our customers will be better served by this partnership, which will encourage higher technological and operational efficiency to deliver better overall customer experience."