INTERNATIONAL – Mastercard agreed to buy a payments platform owned by Denmark-based Nets for €2.85 billion (R47.38bn), using its biggest-ever acquisition to help extend a push into faster payments.
With the purchase, Mastercard is getting an electronic-billing platform and clearing and instant-payment services. The company said that the purchase will hurt profit for as long as two years after it’s is completed, which is expected in the first half of 2020.
Companies and governments around the world have been launching real-time payment systems to speed up the movement of money between consumers and businesses, kicking off a race among banks and payment networks to capture those flows.
“Real time is real, it’s here and it keeps growing,” Michael Miebach, Mastercard’s chief product and innovation officer said in an interview. “What we found in Nets is it’s a business that’s deeply ingrained in some of the most innovative and vibrant payments markets in the world.”
Mastercard’s shares climbed 2 percent to $261.99 (R3 900.50) in early trading in New York. The stock gained 36 percent this year until Monday, compared with the 22 percent advance of the 67-company S&P 500 Information Technology Index.