Российско-Иорданский Деловой Совет

Actis’ Emerging Markets Payments Holdings platform acquires Visa Jordan for $87 million

AMMAN (JT) – UK emerging markets investor Actis announced Wednesday the acquisition of Visa Jordan Card Services Company “Visa Jordan”, the Kingdom’s largest debit and credit card operator for $87 million.

The acquisition will be the latest investment for Actis’ Emerging Markets Payments Holdings (EMPH) platform, which aims to be the leading payments business in Africa and the Middle East, the company said in a statement.

Visa Jordan, previously owned by Visa and 10 local banks, dominates Jordan’s debit and credit card acquiring and processing markets. It is the exclusive Visa merchant acquirer that owns and operates Jonet, effectively the national ATM switch. Its leading position means it owns 80 per cent of the point-of-sale terminals in Jordan and processes all Visa point-of-sale and all inter-bank ATM transactions.

In July 2010, Actis invested $30 million in EMPH to acquire Egyptian-based Mediterranean Smart Cards Company (MSCC).

“Since then, MSCC has extended its operations to 32 countries and serves over 85 banks and offers a full range of card schemes, including Visa, MasterCard, Amex, Diners International and the Chinese scheme, CUP,” said a press release received from TRACCS public relations agency.

“Its business model provides outsourced card issuing and acquiring services for banks, many of whom lack the skills necessary to manage a world-class card operation, or who choose to outsource card management in order to focus on core banking priorities,” the press statement added.

“EMPH’s ambition reflects a belief in the fundamental shift in consumer and business behaviour in emerging markets from cash transactions to cards and electronic payments,” stated the company.

Actis’ presence in the Egyptian market has been building steadily over the last few years.

In 2009, Actis became the largest single investor in Commercial International Bank (CIB), Egypt’s leading bank, through $244 million in investments.

The year before, Actisinvested $48.5 million in Mo’men Group for Foods S.A.E, one of Egypt’s major food businesses.

Speaking of the Visa Jordan acquisition, EMPH Chairman Paul Edwards said in the press release: “EMPH’s acquisition of Visa Jordan reflects its confidence in the growth potential of Jordan’s payment card market. Jordan is one of the largest card markets in the Middle East and in Africa [where only South Africa and Egypt are larger].”

“While the country has built an excellent electronic payments infrastructure, and the vast majority of Jordanians have a debit or credit card, many are underused as consumers continue to use cash for most of their transactions. This means there is great scope for growth, “ he added.

Hani Al Qadi, former chairman of Visa Jordan and chief executive officer of Arab Jordan Investment Bank, described the sale of such a key part of the electronic national payments system to EMPH as a vote of confidence by EMPH and its backer, Actis.

“Jordan is a very progressive Arab country and its banks and government are key to promote Jordan as a leading financial hub for the region. Together, Visa Jordan and EMPH will be able to play a key role in moving Jordan to a more cashless society to the benefit of all,” said Qadi.

Rick Phillips, partner at Actis, said: “The move from cash to non-cash payment is one the most exciting developments in emerging market consumer economies. It is the strength and pace of this change that drives Actis’ decision to back EMPH in its quest to become the leading emerging market payments company.”

He added: “The success of Visa Jordan Card Services Company to date is a testimony to the previous owners – a syndicate of Jordanian Banks and Visa International. The owners recognised that for the next stage of growth they needed a trusted payments specialist. We are delighted they chose EMPH, not least because this acquisition builds on EMPH’s investment last year in MSCC. We look forward to working with EMPH and Visa Jordan’s management to unlock Jordan’s significant market growth potential, and to leverage our shared expertise in these key markets.”

According to the press release, Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America. With over 100 investment professionals on the ground in nine offices worldwide, it currently has $4.6 billion funds under management.

EMPH is led by Paul Edwards who has had over 20 years experience building successful businesses in Africa and Asia, and played a key role in establishing MTN as Africa’s leading cellular telecommunications company. It is widely believed that the payments industry in Africa and MENA will follow the same dramatic growth as did the cellular telecommunications industry over the last decade.

jordantimes

Russian-Arabic Business Council

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