Barclays currently is in early-stage discussions with potential partners, as part of a review of its global payment activities spanning merchant acquiring and credit card services, and is yet to decide on the size of the stake to be divested
The Barclays tower in London, UK. (Credit: Matt Brown/Wikipedia)
British lender Barclays is mulling to divest a part of its merchant-acquiring business in the UK, as part of the company’s efforts to grow the business.
With plans to bring a partner that can expand the business and raise the capital, the bank has contacted potential partners and worked internally on the plan, reported Reuters.
Barclays is yet to decide on the size of the stake to be sold, which could value the whole business unit at a total of £3bn, said the publication.
The company is in early-stage discussions with potential partners, as part of a review of its global payment activities spanning merchant acquiring and credit card services.
It has distributed a presentation on its domestic merchant acquiring unit to potential bidders, which are mostly specialist payment providers, said the publication.
Barclays spokesperson told Reuters: “We don’t comment on speculation. Our businesses continue to perform well and growing our global payments business is a priority for us.”
In June this year, Reuters reported that Barclays had launched a review of its global payments business to better allocate capital among its divisions.
The company appointed consultants to prepare separate financials for its domestic merchant acquiring operation, under an initiative internally known as Project Hyperion.
Through Project Hyperion, Barclays joins other European lenders in monetising payment operations, including Spain’s Banco Sabadell and Italy’s Intesa Sanpaolo.
Furthermore, Barclays is also evaluating interest in its German consumer finance operations, dubbed Barclaycard Germany, said the publication.