BNP Paribas and BPCE join forces to create a payment processor

Two banking giants have just announced that they are joining forces in the French payments market: BNP Paribas and BPCE. The two partners will now also be working together to offer a processor capable of processing all card payments in Europe. But they are not the only ones hoping to create the future market leader.

FACTS

• BNP Paribas and BPCE have just made official their new ambition to build a common payments technology platform. This platform, known as a "processor", will be supported by a new joint venture yet to be set up.
• This processor, equipped with a technology platform, will be responsible for :
• process all BNP Paribas and BPCE card payments in Europe (some 17 billion transactions),
• integrate the best technological standards in the payments market,
• aggregate the innovations of domestic and international schemes (Carte Bancaire, Visa, Mastercard, EPI/Wero...).
• But the two partners also see themselves as payment service providers for other market players, with plans to address their processor to other banks.
• The two banking groups will invest €200 million, equally between 2024 and 2028, to bring their project to fruition.

CHALLENGES

• Establishing itself as a leader: The new joint venture created by BNP Paribas and BPCE would be capable of establishing itself as the leader in processors in France. Above all, however, the two groups hope to position themselves on the European podium in the medium term.
• Involvement in market evolution: In addition to promoting a financial economy based on cooperation, the new joint processor should also enable the two banking groups to take part in the evolution of payments, particularly in terms of digitization and immediacy.
• Extending an existing partnership : BNP Paribas and BPCE were already working together in the payment market, notably via Partecis, the publisher of the software developed jointly by the two banks.

MARKET PERSPECTIVE

• Joining forces is definitely a promising strategy in the French and international payment markets. BNP Paribas and BPCE are not the only ones with a joint project.
• Opposite them, Worldline and Crédit Agricole are also working on the construction of their joint venture; earlier this year, Crédit Agricole announced its acquisition of a stake in Worldline.