nets

          Michael Miebach

Mastercard has agreed to acquire the Nordic paytech company Nets for approximately $3.19 billion in a bid to beef up its existing account-to-account capabilities (A2A).

According to Microsoft, the acquisition will enable it to enhance its capabilities across infrastructure, applications for end-user solutions and value-added services including data analytics and fraud protection. Mastercard’s A2A capabilities will expand into Europe, thus adding to its portfolio which includes the UK, Americas, Asia, Middle East, etc.

“The global opportunity for real-time payments is accelerating,” said Michael Miebach, chief product & innovation officer, Mastercard. “This deal strengthens our unique position as the one-stop partner for any bank, merchant or government’s payment needs. The combination with existing Mastercard assets such as Vocalink, Transfast, and Transactis delivers real-time payment capabilities, innovation and expertise that are truly differentiated.”

The supplier states that the paytech’s acquisition will benefit Mastercard’s Send and Transfast technologies that specialize in cross-border payments. It is also expected to supplement Mastercard’s bill payment capabilities through Transactis‘ acquisition.

“Over the past five years, Nets has built a strong account-to-account payments platform with a global growth opportunity. However, to fully unlock its international growth potential beyond Nets’ existing geographical footprint requires the capabilities and resources of an established global leader,” said Bo Nilsson, Group CEO of Nets. “With its resources and global reach, Mastercard is uniquely positioned to unlock the potential of Nets’ account-to-account business,” added Nilsson.

The transaction is expected to close in the first half of 2020.

Recently, Nets & Prezelewy24 collaborated to form a Polish payments service provider,  P24 Dot Card.

Mastercard, also, partnered with UK based Fintech SumUp to increase the number of electronic payment acceptance locations across 27 European countries.

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by Megha Bhattacharya
Market Analyst at IBS Intelligence
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