TSYS has floated a joint venture in collaboration with Central Payment, which will continue to do business under its current name.
According to the terms of strategic alliance, TSYS owns 60% stake in the joint venture, and it will operate as a TSYS affiliate, while remaining stake will go in the kitty of Central Payment.
TSYS’ merchant services segment president Mark Pyke said this joint venture with Central Payment enhances its distribution model, with its strong sales agent channel made up of more than 700 active, independent agents.
"This move is another example of our focus on growing our merchant acquiring business, and expanding beyond processing," Pyke added.
Set up in 2005, Central Payment is a privately held direct merchant acquirer, which serves small- to medium-sized merchants through an Independent Sales Agent (ISA) model.
TSYS said that the new entity will be managed by a board of directors including both TSYS and Central Payment executives.
Financial Technology Partners and FTP Securities (together FT Partners) acted as financial and strategic advisors to Central Payment in this transaction.
Trading in more than 80 geographies worldwide, TSYS is able to support financial institutions, businesses and governments with its innovative payment solutions.