SINGAPORE: Payment provider NETS on Tuesday (Apr 11) signed an agreement with Oversea-Chinese Banking Corporation (OCBC) subsidiaries - Banking Computer Services (BCS) and BCS Information Systems (BCSIS) - for S$38 million.
Upon completion of the acquisition, BCS and BCSIS will become wholly owned subsidiaries of NETS and will continue to operate as independent entities, according to NETS' press release.
The company's strategic acquisition will enable it to deliver payment innovations that are simple, swift, secure and accessible to its customers. "The assimilation of both companies will enable a more pervasive digital payment platform which will facilitate wider adoption and utilisation of electronic payments," it said.
BCS manages and operates the clearing and payment infrastructure for the Singapore Clearing House Association (SCHA), including managing an electronic service that allows immediate transfer of Singapore dollar funds between accounts of the participating banks in Singapore. It was set up in 1976 and currently operates core services like FAST (Fast And Secure Transfers), IBG (Inter-bank GIRO) and CTS (Cheque Truncation System).
BCSIS designs and develops clearing and payment technology solutions for the financial services industry. It also provides bureau services that include cheque processing, lockbox services, document digitisation and imaging, as well as business continuity services.
The transaction is expected to be completed in the second quarter of 2017, NETS said.
“The coming together of BCS and NETS is timely and fully aligned with Singapore’s electronic payments roadmap," said Monetary Authority of Singapore's managing director, Ravi Menon.
"The creation of a single operator for FAST, Interbank GIRO, and NETS EFTPOS will strengthen synergies across these key retail payment systems, encourage more innovative and inter-operable payments solutions, and spur the adoption of e-payments by consumers, businesses, and the Government,” he said.