Aiming to scale up its merchant acquiring business, Bank of the Philippine Islands (BPI) has entered into an agreement to form a joint venture with the US-based payment services firm Global Payments Inc (GPN).
Under the agreement, BPI will acquire 49 per cent stake in GPN’s local subsidiary Global Payments Asia Pacific-Philippines Inc (GDAP), the bank said in its disclosure to the Philippine Stock Exchange (PSE).
BPI said the joint venture will strengthen its position in the merchant acquiring industry, adding that the company will further benefit from GPN’s robust infrastructure and global expertise.
BPI president and CEO Cezar Consing said that the partnership will deliver superior technological and operational efficiency benefiting BPI customers. “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,” Consing said.
GPN’s chief executive officer Jeff Sloan said the JV is part of the company’s business strategy to drive sustainable growth by expanding strategic relationships and distribution in Asia. “This new partnership will allow us to leverage our strengths and provide a superior product and service offering in the Philippines, the fastest growing market in Asia,” Sloan said.
Founded in 1851, BPI remains one of the largest universal banks in the Philippines with distribution network spread both in the domestic market as well as abroad. The bank currently has 6.8 million customers through its network of more than 800 branches, over 2,500 automated teller machines nationwide and close to 30,000 point-of-sale terminals.