HSBC in JV with Global Payments

The UK-based Hongkong and Shanghai Banking Corporation (HSBC) has signed an agreement with US-based Global Payments Inc to form a joint venture for credit card merchant acquiring businesses in Asia, including India.

HSBC will transfer its existing credit card merchant acquiring businesses in 10 Asian countries to a new company and then sell a 56 per cent stake in the company to Global Payments for $67.2 million.

HSBC said the move is aimed at expanding the merchant acquiring businesses in India, Brunei, Hong Kong, Macau, China, Malaysia, Maldives, Singapore, Sri Lanka and Taiwan. HSBC would hold a 44 per cent stake in the venture. The deal is subject to necessary regulatory approvals and conditions.

HSBC president and CEO, Michael Smith, said: "This is a good opportunity to join forces with Global Payments. The JV will have the benefit of HSBC's large and extensive footprint in the region as well as Global Payments' technological expertise."

The new company based in Hong Kong will at the outset have around 100 employees providing services to an existing base of over 40,000 merchant outlets. The company will have three directors from Global Payments and two from HSBC.

Global Payments is one of the largest payment processing providers in the world, offering transaction processing products and services that manage, support and speed up the processing of funds and payment information.