One of the leading payments providers in the industry, SafeCharge (LON:SCH), has just unveiled that the company is expanding its business into a new area. The payments services provider has unveiled a strategic partnership with German company FinTech Group AG, which is listed on the Frankfurt Stock Exchange.
As part of the agreement between the companies, SafeCharge will acquire 5% equity of FinTech for roughly €10 million. The board of FinTech has voted on a capital increase of 810,000 new shares at €12.45 per share, with total proceeds from the sale totaling €10,084,500 ($11.22 million).
The deal involves the banking subsidiary of FinTech. BIW Bank is a full service bank boasting over €1.3 billion of customer deposits. SafeCharge will help the financial institution develop banking services related to transactions, mobile payments and debit cards.
The partnership could help SafeCharge jumpstart new business lines
Commenting on the announcement, the CEO of SafeCharge, David Avgi, said, ”The partnership marks another step in our strategy to create a new generation of financial services and payments for a global customer base.”
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The platform which BIW Bank provides will be used by SafeCharge to begin offering a full banking suite to its client base. Safecharge is in the process of launching a new digital wallet service – Pay.com. The solution is designed to offer an alternative to traditional banking, payment and money transfer services.
BIW Bank will be the first partner bank for the launch of the new service in Germany.
“The business we are building is expanding into new geographies, market verticals and services, increasing our presence throughout the payments system. Our investment in FinTech underscores the importance of the partnership to the Group and our commitment to growth,” Mr. Avgi explained.
The CEO of German company FinTech, added, “Our subsidiary XCOM is one of the leading technology providers for banks and financial institutions and XCOM’s subsidiary BIW Bank is the outsourcing and white label banking partner of choice for many German banks as well as for many newly established fintech start-ups.”
“Based on our technology expertise and regulatory platform, we will be able to help SafeCharge jumpstart new business lines by offering their retail and corporate customers European-wide comprehensive banking services opportunities,” he concluded.