ICICI Bank has agreed to sell 81% stake in ICICI Merchant Services to US-based First Data Corporation (FDC) for $90m, reported the Economic Times. The India-based bank is said to have recently hived off its network of electronic point of sales (PoS) terminals, which accepts credit and debit card payments, to ICICI Merchant Services.
Reportedly, Reserve Bank of India, the Indian financial regulator, has approved the deal. According to banking sources, the deal value has gone up after RBI has said recently that it would allow merchant establishments to swipe customer cards and offer them cash.
Apart from unlocking value, ICICI Bank expects that this move will bring down transactions costs. Further, every time a credit or debit card is processed through the PoS network, ICICI Merchant Services will earn a fee.
Amrish Rau, country manager of First Data Corporation is likely to head the payments firm. He said: “First Data, along with partner banks, is keen to expand payment transactions not just at top retailers but also through small cities or towns in India,” reported the newspaper.
