BPI forms joint venture with US payments provider

MANILA, Philippines - The Bank of the Philippine Islands (BPI) and Global Payments Inc. (GPN) have formed a joint venture payment service provider that would increase accessibility for the bank’s clientele in both markets.

BPI is one of the leading commercial banks in the country, and considered among the leaders in the remittance and corporate clientele business. It also ranks second largest in the merchant acquiring industry.

GPN is as leading payment services provider headquartered in Atlanta, Georgia.

BPI bought into GPN’s Philippine subsidiary, Global Payments Asia Pacific-Philippines Inc. (GPAP) by infusing its assets to effectively own a 49-percent stake in GPAP.

The joint venture would simplify remittances between the Philippines and the US. It will likewise open other commercial and retail opportunities for both institutions.

It can facilitate online buying, commercial and retail money transfers, BPI president and chief executive officer Cezar P. Consing said the joint venture marks an exciting new phase for the country’s merchant acquiring space.

“There is great growth potential in the payments industry and we look forward to continue building our capabilities to enhance the relevance and value we provide to our customers. We believe that this partnership will deliver superior technological and operational efficiencies to the benefit of our customers,” Consing added.

Aside from the strategic fit that BPI’s and GPAP’s complementary client portfolios provide, the joint venture is expected to further benefit from GPN’s robust infrastructure and global expertise, and BPI’s extensive network and significant merchant base.

Aiming to take advantage of the increasingly global nature of payment services, the partnership with GPN will allow BPI to enhance the customer experience for its merchant clients with an expanded suite of product offerings and a more advanced technology platform.

GPN chief executive officer Jeff Sloan said that the strategic partnership aligns with the payment service provider’s business strategy to drive sustainable growth by expanding strategic relationships and distribution in Asia.

“This new partnership will allow us to leverage our strengths and provide a superior product and service offering in the Philippines, the fastest growing market in Asia,” Sloan added.

Filipinos based in the US are among the leading sources of remittances to beneficiaries in the Philippines.