MasterCard Acquires European E-Commerce Payments Processor
Aug. 26, 2010
MasterCard Incorporated recently announced it has entered into an agreement to acquire DataCash Group plc, a London-based payment service provider, for £333 million ($520 million) in aggregate. DataCash offers a single interface that provides e-commerce merchants with the ability to process secure payments across the world. The company develops and provides outsourced electronic payments solutions, fraud prevention, alternative payment options, back-office reconciliation and solutions for merchants selling via multiple channels. It also has a leading fraud solutions and technology platform. MasterCard said it believes the acquisition of DataCash will create a long-term growth platform, enabling the Purchase, N.Y.-based card network to drive growth of the e-commerce category it acquires new customers, thus increasing the use of MasterCard-branded products for online purchases—particularly in Europe and other international markets. “E-commerce represents an important part of MasterCard’s growth strategy, and this acquisition will allow us to provide new services to our acquiring customers, as well as drive increased e-commerce penetration in both existing and new markets,” said Ajay Banga, MasterCard president and chief executive officer. “The acquisition of DataCash will expand our already significant e-commerce merchant gateway presence in Asia and Australia to European countries and other high-growth, emerging markets worldwide.” The transaction, which is expected to close by the end of October 2010, is subject to U.K. regulatory and DataCash shareholder approval.