By Daniel Lanyon on Monday 19 October 2020
The deal follows recent investments by Visa, whose share price has nearly tripled over the past five years, in Monese and Plaid.
Payments issuer processor, Global Processing Services (GPS) has secured a strategic investment from payments giant Visa.
The firm says the new cash, an undisclosed amount and implied valuation, will accelerate GPS’ global expansion.
It comes at a key time for firms that power consumer-facing fintechs such as Revolut and Starling Bank. The Wirecard downfall and subsequent temporary outage for customers demonstrated the complexity and interconnected nature of many firms but also the value of enterprise-level fintech.
GPS, which is backed by UK growth private equity firm, Dunedin works with many fintechs, digital banks - including both Revolut and Starling Bank - and e-wallet providers.
Joanne Dewar, Chief Executive Officer at GPS(pictured), said: “This strategic partnership with Visa is a fantastic step in the GPS growth journey, providing both recognition as a trusted and proven processing provider and further extends our reach.”
“GPS is uniquely focused on customer success and we welcome the opportunity to spotlight the role we play at the epicentre of the fintech story.”
GPS expanded into the APAC region last year including with deals with Xinja, the second Australian neobank to be made an authorised deposit-taking institution, and WeLab Bank, the first homegrown virtual bank in Hong Kong. The company is looking to move into new regions
“The entire payments industry is evolving at speed, which has only accelerated further with the increased preference and convenience for digital payments over cash transactions. Through innovation and solid partnerships, we will successfully accelerate the delivery of better financial experiences for every customer,” Dewar said".
Kevin Jacques, Vice President, Visa Ventures, added: “GPS is an example of how we continue to invest in, and partner with, companies that provide valuable capabilities to the ecosystem and have potential to advance the payments industry. The business has a strong balance sheet, engaging leadership and growth across key regions, and we believe it will continue to be an important enabler for payments processing.”