Amman, Jordan - Emerging Markets Payments Holdings ("EMPH") today announced that it has acquired Visa Jordan Card Services ("VISA Jordan"), Jordan's premier payment card processor and acquirer, for US$87 million.
VISA Jordan, previously owned by VISA and 10 local banks, dominates Jordan's debit and credit card acquiring and processing markets. It is the exclusive VISA merchant acquirer that owns and operates Jonet, effectively the national ATM switch. Its leading position means it owns 80% of the point-of-sale terminals in Jordan and processes all Visa point-of-sale transactions, as well as all inter-bank ATM transactions.
The acquisition is the latest investment for Actis-backed EMPH, which aims to be the leading payments business in the Middle East and Africa. EMPH invested in Africa's Mediterranean Smart Cards Company ("MSCC") in July 2010. Since then MSCC has extended its operations to 32 countries and serves over 85 banks and offers a full range of card schemes, including VISA, MasterCard, Amex, Diners International and the Chinese scheme, CUP. Its business model provides outsourced card issuing and acquiring services for banks, many of whom lack the skills necessary to manage a world-class card operation, or who choose to outsource card management in order to focus on core banking priorities.
Speaking of the acquisition EMPH Chairman, Paul Edwards said: "EMPH's acquisition VISA Jordan reflects its confidence in the growth potential of Jordan's payment card market. Jordan is one of the largest card markets in the Middle East and in Africa (where only South Africa and Egypt are larger)," said Edwards. "While the country has built an excellent electronic payments infrastructure, and the vast majority of Jordanians have a debit or credit card, many are underused as consumers continue to use cash for most of their transactions. This means there is great scope for growth."
Hani Al-Qadi, former Chairman of VISA Jordan and CEO of Arab Jordan Investment Bank, stated that the sale of such a key part of the electronic national payments system to EMPH was a vote of confidence in EMPH and its backer, Actis. "Jordan is a very progressive Arab country and its banks and government are key to promote Jordan as a leading financial hub for the region. Together, VISA Jordan and EMPH will be able to play a key role in moving Jordan to a more cashless society to the benefit of all. I am pleased to be remaining as a director of VISA Jordan and will also be joining the EMPH Board." Said Al-Qadi.
Rick Phillips, Partner at Actis, said: "The move from cash to non-cash payment is one the most exciting developments in emerging market consumer ecogniz. It is the strength and pace of this change that drives Actis's decision to back EMPH in its quest to become the leading emerging market payments company. VJCS's success to date is a testimony to the previous owners - a syndicate of Jordanian Banks and Visa International. The owners ecognized that for the next stage of growth they needed a trusted payments specialist. We are delighted they chose EMPH, not least because this acquisition builds on EMPH's investment last year in MSCC. We look forward to working with EMPH and VISA Jordan's management to unlock Jordan's significant market growth potential, and to leverage our shared expertise in these key markets."
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About Actis
Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$4.6bn funds under management. With over 100 investment professionals on the ground in nine offices worldwide, Actis is proud to actively and positively grow the value of those companies in which it invests. www.act.is
About EMPH
Emerging Markets Payments Holdings Limited ("EMPH") is an Actis-backed enterprise developed to take advantage of growth opportunities in the rapidly evolving emerging markets payments sector. EMPH is committed to creating a payment platform that drives card penetration and other payment methodologies in emerging markets.
EMPH is led by Paul Edwards. Paul has had over 20 years experience building successful businesses in Africa and Asia, and played a key role in establishing MTN as Africa's leading cellular telecommunications company. It is widely believed that the payments industry in Africa and MENA will follow the same dramatic growth as did the cellular telecommunications industry over the last decade.
EMPH concluded its first acquisition in July 2010 with its investment in MSCC, an ex-Visa joint venture and one of Africa and MENA's leading payments companies. Since joining the EMPH stable it has evolved from a purely VISA-oriented payments company into an independent company offering the full range of card schemes, including VISA, MasterCard, American Express, Diners Club International and China Union Pay, to 85 banks in 32 countries. www.emp-holdings.net/
Contact:
TRACCS Jordan
Maha Al-Rawashdeh
Tel: (+962) 6 5660542
Fax: (+962) 6 5660541
E-mail: jordan@traccs.net
© Press Release 2011
