Mastercard acquires Nets’ real-time payment business
Mastercard has purchased Nets Group’s real-time payment business this week for $3.19bn – its biggest acquisition to date.
The Denmark-based company, with its instant payment services and e-billing solutions, will enable Mastercard to shift from being a pure card payments company to a ‘multi-rail’ payments group serving governments, consumers, and businesses.
Nets’ technology will give Mastercard’s existing account-to-account (A2A) capabilities a larger, more scalable customer base, faster open banking solutions and value-added services such as data analytics and fraud protection.
Nets’ Corporate Services business offers a gateway into Europe (Source: nets.eu)
“The global opportunity for real-time payments is accelerating,” says Mastercard’s chief product and innovation officer, Michael Miebach. “This deal strengthens our unique position as the one-stop partner for any bank, merchant or government’s payment needs.”
He added: “We are a multi-rail company – this deal further demonstrates the strength of our strategy, staying ahead of the changing landscape, delivering essential choice to banks, businesses and consumers.”
Mastercard’s acquisition of the majority of Nets’ corporate services business offers a gateway into several European markets, building on the paytech giant’s strategy to tap into wider continental Europe outside its already-established presence in the UK.
Nets’ bill pay service in Norway and Denmark will be particularly useful for Mastercard and allow them to focus on customers in the Nordic region.
The deal is also set to improve and build out Mastercard Send and Transfast technologies which deliver cross-border payments to bank accounts, mobile wallets and cards.
The transaction is anticipated to close in the first half of 2020 and Mastercard expects it to dilute to earnings for up to two years after clearing.
