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The deal will see “la Caixa” work alongside merchants to promote international growth and represents a firm commitment to applying innovation and new technologies to optimise payment management services.
“la Caixa” and the US company Global Payments, an international leader in electronic transaction processing, have entered into a strategic partnership under which a company will be set up to provide payment management services to merchants. With this operation, "la Caixa" stands in leadership positions in the new system of international payments.
The goal of the partnership is to drive growth in payment services provided to traders (known as merchants), a business in which "la Caixa" is already the market leader in Spain, with a 21% market share and more than 150,000 merchant clients. Furthermore, the partnership will improve quality of services and help “la Caixa” work alongside merchants to promote growth abroad.
For "la Caixa" the partnership with Global Payments will boost its range of services and help incorporate technological innovations developed jointly with one of the sector's strongest global operators. These innovations include technology to process micropayments and payments via the Internet and mobile phones.
A pioneering deal for a Spanish financial institution
Global Payments, one of the 1,000 largest companies in the US according to Fortune magazine, is based in Atlanta and is listed on the New York Stock Exchange. With over 3,500 employees it operates right across the US, Canada, Central Europe, UK, Russia and Asia. It will begin operations in Spain in partnership with "la Caixa". His arrival in Spain was preceded by an agreement signed between Global Payments and HSBC in the UK.
According to Juan María Nin, CEO of “la Caixa”, “the strategic partnership means joining forces with a world leader in Global Payments, to drive forward “la Caixa”’s market share growth and reinforce the quality of service that it provides to merchants. Furthermore, the deal represents an important step for “la Caixa” in the international growth of its payment systems business. Global Payments is the best partner that "la Caixa" could possibly find for this project, with its 40 years of recognised experience in the merchant services business and a powerful international presence. "la Caixa” and Global Payments share the same attitudes towards the importance of new technologies and are committed to capitalising on the new business opportunities that these generate".
“We are thrilled that “la Caixa” has agreed to partner with Global Payments,” said Chairman and Chief Executive Officer of Global Payments, Paul R. Garcia. “This alliance clearly fits with our strategic objective of expanding globally and specifically within Western Europe while meeting “la Caixa”’s own growth strategy of expanding its market share. Based on our singular focus on merchant acquiring, we expect to grow the customer base by providing increased sales resources and focus on the merchant acquiring business,” Garcia continued.
Under the deal a new company will be set up with an initial value of 220 million euros. Global Payments will acquire 51% of the company and "la Caixa" will retain the remaining 49%.
This company will operate all of "la Caixa"'s merchant services and provide support to the “la Caixa” branch network, which will handle all dealings with client merchants.
The transaction is pending regulatory approvals from the Dirección General del Tesoro y Política Financiera for the creation of the new company as a payment institution.
Global Payments is the leading supplier of electronic transaction services to merchants, commercial organisations, financial institutions, governmental agencies and multinational corporations in the US, Canada, Central Europe, UK, Russia and Asia. Global Payments provides a wide range of solutions for credit and debit card payments, as well as many more services.