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HSBC Completes Payment Processing JV With Global Payments Inc.
Hamilton, Bermuda: 25 July, 2006 - Following its announcement on 8 September 2005, The Hongkong and Shanghai Banking Corporation Limited has now completed its formation of a joint venture merchant acquiring business in Asia with Global Payments Inc. The new company will be called Global Payments Asia Pacific Limited.
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 per cent interest in Global Payments Asia Pacific, while Global Payments Inc. has acquired a 56 per cent stake in the new company following its payment of a consideration of US$67.2 million to HSBC.
Michael Smith, President and Chief Executive Officer of The Hongkong and Shanghai Banking Corporation, 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 as Global Payments Asia Pacific will benefit from HSBC's strong presence in the region as well as Global Payments Inc.'s technological expertise."
Paul R Garcia, Chairman, President and Chief Executive Officer of Global Payments Inc., said: "We are honoured to have been chosen by HSBC for this important joint venture. Having the ideal partner for payment card processing makes our prospects for success in this dynamic and growing region even more compelling."
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. The joint venture will have an initial complement of about 120 employees providing services to an existing base of over 45,000 merchant outlets. Global Payments Asia Pacific's board will comprise three directors from Global Payments Inc. and two from HSBC.