In yet another mega merger in the retail sector, U.S.-based credit card processing firm Vantiv is acquiring UK-based payments technology firm Worldpay in a deal worth $9.94 billion, after J.P. Morgan withdrew its interest in Worldpay earlier this week, according to various media reports.
Payment technology companies have become takeover targets for credit card companies and banks as they look to take advantage of the rapid growth in digital transactions such as chip-enabled cards and mobile wallets, according to a report in Reuters.
The deal gives Vantiv a major boost in the lucrative European ecommerce market, where Worldpay processes about 31 million transactions daily, according to PYMTS.com. Overall Worldpay says it processes 35.8 million transactions a day, servicing everything from large retailers to mom-and-pop firms and startups.
Digital payment has been a fast-growing area of financial technology as ecommerce continues to boom, including the rapid rise of mobile commerce. The combination gives Vantiv-Worldpay a stronger position against competitors such as First Data, ADP and Chase, especially in Europe.
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