GlobalCollect Acquiring Largest South American e PSP Sub1
- The Netherlands-based e-PSP GlobalCollect has acquired its South American counterpart Sub1. Via its “G-PAY” offer, Sub1 is the main South American e-payment operator: almost fifty payment connections throughout the sub-continent, including Brazil, Chile, Argentina, Mexico, Columbia and Peru. The operated websites mainly fit in sectors such as the travel industry, retail, online gaming, financial services, telecommunications, digital content vendors, as well as large eBay-like large-scale portals.
- Sub1 also provides other payment solutions: management of banking card industry “Transaktor” (issuing and acquiring, ATM and POS transactions), system integration, onsite POS systems integration, payment information capture.
- GlobalCollect is already installed in San Francisco, in Buenos Aires, and in Singapore: this acquisition is a major move outside of Europe for the company. In South America Sub1 has already been selected by Banamex, American Airlines, Hyatt Hotels, Radisson and Sheraton, eBay/MercadoLibre, and even by the Argentinean newspaper, Clarin, etc. The South American B2C e-commerce sales are set to witness more than 61% growth by 2015, to 55 billion dollars compared to 34 expected in 2012 (source: eMarketer).
- GlobalCollect’s internationalisation follows the implantation ofOgone in India through purchasing of EBS in spring 2011. These e-PSPs are also trying to fight the acquisition of some of their rivals by international card schemes: Cybersource by Visa, DataCash by MasterCard in 2010.
- GlobalCollect's business model is highly specific: in addition to payment connection, the e-PSP also gathers and centralises the e-merchants' funds, enabling them to dispose of a single bank account. This treasury rationalisation offer enabled it to be granted Payment Institution status in Europe and promote its European passport in most of the EU Member States. These authorisations actually make the difference and explain why it has been adopted by the turn-key e-commerce platform Magento for instance.