Frankfurt/ Utrecht - 15 February 2006. Interpay Nederland B.V., payment processor based in the Netherlands, and Transaktionsinstitut f|r Zahlungsverkehrsdienstleistungen AG (Transaktionsinstitut), payment processor in Germany, today announced that they have signed a Memorandum of Understanding (MoU) to establish a merger.
The completion of the deal is expected in the middle of 2006, after having sought the necessary approvals, for instance antitrust. With the signing of this MoU Interpay and Transaktionsinstitut will become the first European full-service payment processor in a consolidating payments market. The intended partnership will be an important contributor and driving force towards the realisation of the Single Euro Payments Area (SEPA). The combined volume of the partnership will account for the processing and clearing of around 6.6 billion transactions per year, leading to a combined market share of the new entity in the Euro zone of over 10 per cent. Based on the experience, skills, expertise and strategy of the new entity further growth is one of its primary goals.
By bundling the skills, volumes and expertise of two leading European payment processors, Interpay and Transaktionsinstitut will be a first mover and together form a leading and groundbreaking full service payment processor within the Euro-domestic market SEPA. The partnership will enhance development investments, resulting in best-of-breed technology, cost-efficient processing services and reinforced market performance.
Strengthening the market position within SEPA Ben Haasdijk, CEO of Interpay, says: "I proudly state that with the establishment of this new company, Transaktionsinstitut and Interpay ensure a solid market position in the consolidating European payments market. The combined volumes of the two processors will result in considerable increase in scale, and will enhance important synergy and scale advantages in the future. Moreover, it will boost further growth potential as market parties will be able to take their SEPA volumes to a cost-efficient, market-driven, reliable and independent payment processor."
First European full-service payment processor The new company will be dedicated to offering innovative solutions to its current and new customers. Michael Steinbach, Transaktionsinstitut's Spokesman of the Board of Managing Directors, declares: "Transaktionsinstitut's strategy has always been geared towards SEPA. Joining forces with Interpay enables us to jointly gain substantial advantages and to offer highly competitive products in terms of price and quality. We will enable our current and future clients and partners to make best use of the tremendous chances a Euro-domestic payments market offers. The new entity will also benefit the existing partnership with the payment processor Fin-Force, located in Brussels."
Transaktionsinstitut and Interpay share their vision on the European payments landscape. Standardisation and harmonisation of European payments will enhance efficiency and international ease of payments, a goal supported by the European Commission, the European Central Bank and the European Payments Council. The formation of a Single Euro Payments Area (SEPA) will result in Euro-domestic market, with harmonised basic payment products throughout Europe. It will also lead to intensified competition and consolidation so that ultimately only a very limited number of payment processors will remain.
The new company is a driving force towards the realisation of the Single Euro Payments Area and will be offering SEPA products the day SEPA starts. The new entity will facilitate speed, security, convenience and cost efficiency of payments within the Euro zone and help their clients making use of the chances SEPA offers.