Easybank Purchases Commercial Issuing Business of SIX

Easybank Purchases Commercial Issuing Business of SIX
07.03.2017 10:00 am

Easybank Purchases Commercial Issuing Business of SIX

Payments , Banking

SIX and easybank announce that SIX will sell itsCommercial Issuing business (the Issuing of credit and prepaid cards) in Austria together with the Issuing Support for Austrian banks to easybank.

A corresponding agreement was successfully concluded by both parties on February 28, 2017.TheIssuing of credit and prepaid cards is operated under the well-recognized national brand “PayLife”. SIX will focus on its B2B business and plans to further strengthen its merchant business (Acquiring) and the transaction processing (Acquiring and Issuing Processing).

SIX, one of the market leaders in card processing in Switzerland, Austria and Luxembourg, has decided to sell the Issuing of credit and prepaid cards (commercial issuing) together with the Issuing Support for Austrian Banks to easybank as of February 28, 2017. Commercial Issuing is a profitable business segment which has been acquired by SIX as part of the acquisition of the then PayLife Bank. Commercial Issuing is the only B2C business of SIX. According to its global corporate strategy, SIX will exclusively focus on its role as a B2B service provider for banks, financial institutions and in payment transactions for merchants, especially on acquiring and on processing Acquiring and Issuing transactions. Issuing cards directlyto consumers does not fit in the strategic orientation of SIX.

In contrary to this, credit card issuing is one of easybank’s core businesses and fits with easybank’s growth strategy. In addition, the acquisition will provide easybank with a world class credit card team as well as additional product offerings and features for our existing customer base. easybank will not only continue offering services to the “PayLife” customers, but plans on further investing into the business to to ensure that customers continue to benefit from the latest technology and innovations. The acquisition is another important step for easybank continuing to be leading direct bank in Austria and will thus make a significant contribution to the expansion of its core business. The acquisition is value accretive day 1.

The Acquiring business of SIX in Austria and the Processing business for Austrian banks will remain unaffected by this transaction and will be further expanded as a core business of SIX.

About 150 employees will move to easybank due to this transaction. The transaction is still subject to the customaryclosing conditions and regulatory approvals. The transaction is expected to close in the second half of 2017. Both parties have agreed not to disclose any economics of the transaction.

Related News

PayNearby announces partnership with Sub-K Impact Solutions; enables access to loan repayment options through its retail network

India’s largest agent banking platform, PayNearby is happy to formally announce its partnership with Sub-K Impact Solutions Ltd (Sub-K), a leading player facilitating loans,... Read more »

Banking Circle secures five finalist places at 2020 Emerging Payments Awards

Banking Circle, the financial infrastructure provider to Payments businesses and Banks has secured 5 finalist slots in the 2020 Emerging Payments Awards.... Read more »

Starling, TranSwap and Remitr among first wave to sign up to Currencycloud Spark

New solution provides global multi-currency accounts to Fintechs and FIs

Read more »

Tinkoff launches charitable scheme ‘Cashback to Give Back’

Tinkoff is happy to announce the launch of its new charitable scheme Cashback to Give Back. The aim of the project is to help get... Read more »

PPRO announces 85% volume growth despite pandemic, accelerates plans with new investment from Sprints and Citi

PPRO, the world’s leading local payments platform-as-a-service, reports today an 85% increase in transaction volume from last year, highlighting the... Read more »

Absa ARO Completes Fully Virtual Implementation as It Moves to Fiserv for Card Management and Processing Across Nine African Nations

Fiserv, Inc. (NASDAQ: FISV) a leading global provider of payments and financial services technology, today announced that... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel