Following its announcement in September 2005, HSBC has now completed its formation of a joint venture merchant acquiring business in Asia with Global Payments. The new company will be called Global Payments Asia Pacific.
HSBC has completed the transfer of its credit card merchant acquiring businesses in 10 countries and territories in Asia to the new joint venture. HSBC holds a 44% interest in Global Payments Asia Pacific, while Global Payments Inc has acquired a 56% stake in the new company after paying US$67.2 million to HSBC.
Commenting on the deal, Michael Smith, president and chief executive of the Asia Pacific arm of HSBC, said: We have seen substantial growth in the credit cards business throughout Asia in recent years. We expect this growth to persist as Asia continues to be supported by sturdy economic conditions and rising personal consumption. This joint venture will strengthen our capabilities in the card merchant acquiring business.
Headquartered in Hong Kong, Global Payments Asia Pacific will be headed by its managing director, Ian Courtnage, who was previously with HSBC as a senior manager within its card merchant acquiring business.