US-based payment technology company Global Payments and German commercial banking company Commerzbank have formed a new joint venture (JV), Commerz Globalpay.
Commerz Globalpay aims to provide digital payment solutions to small- and medium-sized business (SMBs) customers across Germany.
The new entity is planned to be launched in the first half of this year, with its headquarters in Frankfurt am Main, Germany.
The closing of the transaction is subject to the approval of relevant supervisory and antitrust authorities.
Upon closing, the payment technology company will own a 51% stake, and the German lender will own the remaining 49% stake in Commerz Globalpay.
Global Payments president and CEO Cameron Bready said: “Commerzbank is the ideal partner to expand our presence in Germany to deliver industry-leading services to merchants across the country.
“This joint venture significantly enhances distribution for our distinctive payment offerings and commerce enablement solutions in an attractive growth market where there are substantial opportunities to digitise the payment experience.”
Commerz Globalpay will provide a complete suite of omnichannel payment and software solutions.
It will combine Commerzbank’s knowledge and relationships within the SMBs in Germany, with Global Payments’ commerce enablement solutions and distinctive payment offerings.
Commerz Globalpay will continue to offer Global Payments smartphone-based payment applications that help merchants accept mobile payments without a separate card reader.
It will also allow business customers to access value-added services, including cloud-based point-of-sale software, loyalty programs, and customer engagement platforms, among others.
Commerzbank board of managing directors member Thomas Schaufler said: “With this joint venture with Global Payments, we are investing in modern forms of payments at the highest level.
“Through simple solutions, new products, and technologies, provided by Global Payments, we are creating an optimal experience for Commerzbank customers. This makes the project an important part of our strategy update to create added value and excellence for our customers.”
