Mastercard Acquires Nets’ Payments Platform in Biggest Purchase Exceeding $3 Billion

Acquisition of corporate services businesses owned by Nets furthers Mastercard’s plan to leverage fast-growing global opportunities in the real-time payments domain.

Mastercard, a US-based global payment solutions company, has signed an agreement for the $3.19 billion acquisition of corporate services businesses of Nets, a payment service provider based in Denmark. The deal is said to be Mastercard’s largest-ever acquisition, which will help the company to accelerate its development in the ‘faster payments’ domain. The acquisition is expected to see completion in the first half of next year, according to Mastercard. For almost a couple of years after the completion of the deal, the acquisition is expected to hurt Mastercard’s profit to some extent. With that said, it will add instant-payment and clearing services and an electronic-billing platform to Mastercard’s portfolio.

“The global real-time payments opportunity is accelerating. The deal adds strength to Mastercard’s unique position as the one-stop partner for any government, merchant, or bank’s payment needs. The combination with our current assets including Transactis, Transfast, and Vocalink delivers real-time payment expertise, innovation, and capabilities that are truly differentiated,” said Mastercard’s Chief Product and Innovation Officer, Michael Miebach.

Acquisition to help Mastercard with robust real-time payment capabilities

“Our company has developed a robust account-to-account payments platform with a global growth opportunity, over the past five years. However, it requires the resources and capabilities of an established global leader to fully unlock its global growth potential beyond our existing geographical footprint. Mastercard, with its global reach and resources, is uniquely positioned for unlocking the potential of our account-to-account business,” said Nets Group CEO, Bo Nilsson.

According to Miebach, Mastercard is planning for the expansion of Nets businesses beyond their primary Nordics markets. The acquisition will help Mastercard with strong real-time payment capabilities across three major areas, viz. value-added services, applications for end-user solutions, and infrastructure. It will also add more scale and depth to Transfast and Mastercard Send technologies. Furthermore, it complements technical assets that Mastercard has added to its bill payment capabilities by recently acquiring Transactis. Importantly, it will push Mastercard’s account-to-account expertise and capabilities in continental Europe.

“We’re a multi-rail company – this deal demonstrates further the strength of Mastercard’s strategy, staying ahead of the varying landscape, delivering essential choice to consumers, businesses, and banks,” said Miebach.

The acquisition of Nets’ corporate services businesses is also considered as a strategic move made by Mastercard that builds on its recent partnership with P27 Nordic Payments Platform to create an innovative and advanced batch and real-time payments system to serve the Nordics markets.

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