Cuscal announces plans to acquire Strategic Payments Services

Australian bank notes in wallet

Cuscal, an Australian end-to-end payments provider, is awaiting shareholder approval to acquire Strategic Payments Services, in the hopes of cementing its market position.

Cuscal is the only independent ADI licensed wholesale payments company to deliver banking capabilities and payments solutions across the entire spectrum of the payments value chain, the company says.

Managing Director of Cuscal, Craig Kennedy, said combining Cuscal’s and SPS’s complementary strengths in issuing and acquiring would bring significant opportunities to clients of both companies.

 “The future of payments is about real time, mobile and data,” Kennedy said. “This synergistic acquisition will complete our capabilities in the current environment and prepare us for where the market is heading.”

 “Following the completion of this acquisition the new entity will represent approximately 10 per cent of the Australian electronic funds transfer (EFT) market, thereby providing healthy competition and greater choice for clients in the process,” he added.

It is anticipated that the combined entity would service more than 100 clients across a number of industries including financial institutions, mutual banks, credit unions, insurers, government departments and agencies, and major retail corporations.

The combined infrastructure would support switching technology that enables issuers and acquirers to access the payment systems, and a real-time payment platform and 24×7 fraud prevention engine.

It would also allow connections to all cards and payment schemes, a digital and mobile infrastructure, switching for approximately 9000 ATMs, including the rediATM network, one of Australia’s largest ATM networks.

The transaction to bring the two companies together, which is expected to occur by the end of the year, is subject to shareholder approval at Cuscal’s November AGM.

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