The payment processor, Mastercard Inc. has sealed its biggest deal on Tuesday in order to push its boundaries to the Nordic markets. The company has announced to purchase most of the major corporate services businesses of Danish group Nets for $3.19 billion.
Inclusions of the deal
- In order to boost the account-to-account (A2A) capabilities, Mastercard is buying the Nets’ e-billing solutions and instant payment services.
- The deal also includes open banking assets of the Danish-based payment group which will make the company’s payment infrastructure faster.
- The payment processing giant also says that this deal adds more “depth and scale” to their technologies.
Mastercard new deal: Advantages
Today, Mastercard announces it has entered into an agreement to acquire the majority of the Corporate Services businesses of Nets, a leading European PayTech company https://t.co/Y7Z4371pnV
— Mastercard News (@MastercardNews) August 6, 2019
- This acquisition will help Mastercard to boost its existence in the European markets.
- Also, with this deal, the global opportunities for payment sector will also accelerate.
- This will also help Mastercard to lay more focus on their real-time payment processing and make it faster.
- According to Mastercard, this deal also showcases the strength of their strategy and prove them to be a multi-rail company.
- Mastercard is taking all the essential steps to provide essential choices to banks and consumers.
About Nets’ corporate services
The Corporate Services Business, Nets operates software license models in European markets. It also provides Open banking solutions for banks and fintechs. The company also ensures more added security features that provide help to users while operating.
Long term benefits of the deal
Scale, Speed, Agility – Nets Corp Services acquisition means Mastercard Real-Time payment capabilities are truly unmatched! Exciting times! https://t.co/ijOAlCjykr
— Michael Miebach (@MiebachMichael) August 6, 2019
As stated above, this deal will add more depth and scale to the Mastercard technologies. The company has listed following long term benefits of their multi-billionaire deal:
- Mastercard has extended its A2A services to Asia, America, Africa, and the Middle East.
- According to the company, the deal will close in 2020 and will be dilutive for up to 2 years after the deal is closed.
- More people are switching to digital payment processing instead of cash. By 2023, this will, in turn, increase the revenue of global payments’ revenue to about $3 trillion a year.
Thus, Mastercard has also joined the list of big companies who have invested in global payments’ sector. For more updates, keep watching BlockToro!