National Bank (NBG) and US payment services provider EVO Payments have reached a strategic agreement to jointly establish a card transaction management company.
According to Business Daily sources, the two sides have agreed to set up a joint venture to which NBG’s card POS sector will be transferred, with the US company having control of the business and the Greek lender acquiring a significant, strategic, minority participation. Sources say that NBG’s stake will be close to 40%. Talks are continuing to finalize remaining technical details while official announcements are expected in coming weeks.
With this move, National Bank will immediately receive a considerable amount, sources place at more than 100 million euros, while also securing a strategic partnership with one of the leading payment service providers that creates expectations of future benefits. It will also help with NBG's Transformation Program currently being implemented by management
It is noted that EVO Payments, listed on the NASDAQ Index in New York (NASDAQ: EVOP), was founded in 1989 and currently operates in 50 countries. Its systems trade in more than 130 currencies around the world, with annual transactions exceeding $100 billion. It employs 2,200 people in 13 countries and has offices from China to the United States. It works with some of the largest banks in Europe such as Deutsche Bank, Raiffeisen Bank, Popular, Bank of Ireland, BNP Paribas etc.
Other Greek systemic banks have taken similar steps in a bid to develop their POS merchant services. Alpha Bank recently announced a similar agreement with the Italian Nexi, while Piraeus Bank proceeded with the full sale of its POS arm. Eurobank is also in talks to sell its respective services.