Global Payments Inc. has formed a joint venture with The Hongkong and Shanghai Banking Corporation Limited to provide payment processing services to merchants in the Asia-Pacific region.
“We are thrilled that HSBC, one of the world’s most respected financial institutions, has agreed to partner with Global Payments in the Asia-Pacific region,” said Chairman, President, and Chief Executive Officer of Global Payments Paul R. Garcia. “This region has incredible growth opportunities for credit and debit card payment processing, especially in mainland China and India. This strategic transaction heralds a promising new chapter in our company’s history.”
“HSBC is excited about this unique opportunity to join forces with Global Payments,” said Michael Smith, president and chief executive officer of The Hongkong and Shanghai Banking Corporation. “The joint venture will have the combined benefit of HSBC’s large and extensive footprint in the region as well as Global Payments’ technological expertise. We believe this is a powerful combination,” added Smith.
Under the terms of the agreement, and pending regulatory approvals and customary closing conditions, Global Payments will pay HSBC US$67.2 million in cash to acquire a 56 percent ownership interest in the joint venture. HSBC will control the remaining 44 percent and will contribute its existing Asia-Pacific merchant acquiring channel in ten countries and territories to the joint venture. In addition, the bank has agreed to a ten-year marketing alliance in which HSBC will refer new merchant customers to the joint venture for payment processing services in ten Asia-Pacific countries and territories.