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Nets buys two payment units from OCBC
NETS will buy two payment companies wholly owned by OCBC Bank as part of a move to go cashless in Singapore.
Nets said on Tuesday that it has inked the deal to buy Banking Computer Services Private Limited (BCS) and BCS Information Systems Pte Ltd (BCSIS) - both wholly owned by OCBC - in a transaction worth S$38 million.
BCS and BCSIS will become wholly owned subsidiaries of Nets. Both companies will continue to operate as independent entities within Nets, which is owned by the three local banks - DBS, OCBC and United Overseas Bank.
Nets said the move will lead to a more pervasive digital payment platform which will facilitate wider adoption electronic payments.
"The coming together of BCS and NETS is timely and fully aligned with Singapore's electronic payments roadmap," said Ravi Menon, managing director, Monetary Authority of Singapore.
"The creation of a single operator for FAST, interbank GIRO, and NETS EFTPOS will strengthen synergies across these key retail payment systems, encourage more innovative and inter-operable payments solutions, and spur the adoption of e-payments by consumers, businesses, and the government," said Mr Menon.
BCS manages and operates the clearing and payment infrastructure including managing an electronic service that allows immediate transfer of Singapore dollar funds between accounts of the participating banks in Singapore. It was set up in 1976 and currently operates core services like the FAST (fast and secure transfers) and interbank Giro. EFTPOS stands for electronic funds transfer at point-of-sale.
BCSIS designs and develops clearing and payment technology solutions for the financial services industry. It provides services that include cheque processing, lockbox services, document digitisation and imaging, as well as business continuity services.
The transaction is expected to be completed in the second quarter of 2017.