Following hot on the footsteps of Credit Agricole and Worldline, BNP Paribas and BPCE have negotiated a major new step for the French payments market by jointly acquiring new technology for processing payments for card holders and merchants.
The processor will handle all card payments from BNP Paribas and Groupe BPCE in Europe, accounting for 17 billion transactions, and could also be opened to other banks, the companies say.
It will leapfrog other initiatives to become the No.1 processor in France, both Groups share the ambition to make it one of the top 3 processors in Europe.
“The first generation of our collaboration in payments with BNP Paribas was a great success,” says Nicolas Namias, CEO of BPCE.
“With this new industrial partnership project, in line with our next strategic plan, we are taking an important step towards accelerating innovation in payments in the coming years.
In this way, we will offer the best quality of service to our customers, in particular the networks Banque Populaire and Caisse d’Epargne.”
A changing market
Given the unprecedented development of payment infrastructures and its future prospects, it is essential to invest in a way that is commensurate with the challenges.
The partnership project announced today between BNP Paribas and BPCE will respond to ongoing market developments, in particular those relating to the digitalisation of payment systems, the virtualisation of debit cards and promotion of instantaneous transactions.
It strengthens the partnership which already links the two banks within Partecis for the development of payment processing software, which they intend to expand and consolidate into a reference payment processor on the market, on an international level.
The partnership would result in the creation of a common processor with a technological platform (operations, back-office activities and development), capable of integrating the best technological standards for payments, the growing usage of digitalisation (acceleration of mobile payments, expansion of e-commerce, demand for immediacy) and the innovations brought about by domestic and international schemes (Carte Bancaire, Visa, Mastercard, EPI/Wero).
The partnership is accompanied by an exclusive agreement between BNP Paribas and BPCE to create a target business model in the form of a joint venture.
“Payment systems are an essential component of the bank’s relationship with its customers, and we must ensure they adhere to the highest possible standards,” says Jean-Laurent Bonnafé, Director and CEO of BNP Paribas.
“Given that the increase in card transactions is exponential, our ambition for this processor, is to create a device that is efficient and scalable across all our European locations.
It is this context that demonstrates how important this joint European platform project with Groupe BPCE is, as it aims to support the acceleration of our development in payment systems.”
For more French Payments Statistics CLICK HERE
The post BNP Paribas and BPCE announce plan for No.1 processor in France appeared first on Payments Cards & Mobile.