Banco Popular and New York based privately-held payments processor EVO Payments International have agreed to set up a joint venture (JV) to offer merchant acquiring services in the Spanish market.
As per terms of the agreement, EVO Payments will purchase a controlling interest in Banco Popular’s merchant acquiring business in Spain.
Both firms have also inked a ten year marketing partnership agreement, whereby the bank will solely refer its merchant customers to the JV for merchant acquiring services, as well as provide card network sponsorship.
The proposed JV, which has been valued at more than €70m, will come into existence by the end of the first half of 2013, after receiving regulatory clearance.
The merchant acquiring JV will enable the lender to leverage EVO’s expertise and economies of scale, while jointly focusing to develop the business and offering suitable products and services.
Banco Popular currently serves more than 8 million clients worldwide through nearly 2,500 branches in Spain and around 250 branches abroad.
Having managed annual processing volume of $31bn in 2012, EVO serves 275,000 merchant customer businesses of all sizes, including financial institutions, government organizations, and multinational corporations located throughout the US, Canada and Europe.