ANZ and Worldline establish JV
ANZ today announced it will enter into a joint-venture with European-based payments leader Worldline to provide its small business, commercial and institutional customers in Australia with access to the latest technology for fast, reliable and more secure point-of-sale and online payments.
As part of the joint venture, ANZ and Worldline will enter into a long-term strategic alliance under which ANZ will exclusively refer new merchants to the joint venture, and the joint venture will exclusively refer merchants to ANZ for banking products. ANZ will be the exclusive provider of banking services to the joint venture, including providing certain financing facilities.
The strategic alliance has an initial term of 10 years. The joint venture board will comprise five directors: three appointed by Worldline and two appointed by ANZ.
The joint venture arrangement involves ANZ and Worldline forming a newly created merchant acquiring group, with ANZ and Worldline holding a 49% and 51% interest respectively.
ANZ Group Executive Australia Retail and Commercial, Mark Hand said:
“We have a proven track-record of partnering with global leaders in specialist fields if it means providing a better service to our customers. Receiving fast and secure payments is key to running a successful business and this partnership will provide our customers with access to some of the most advanced payments technology currently available, as well as future innovations, to improve the speed and security of point-of-sale and online payments”.
ANZ estimates completion of the transaction will increase its Level 2 CET1 capital ratio by ~5 basis points. The transaction is expected to be completed in late 2021 and is subject to regulatory and other approvals and card scheme arrangements.