BNP Paribas, BPCE to form strategic payments partnership

By joining forces, BNP Paribas and BPCE intend to respond to current market developments, mostly to those concerning the digitalisation of payment systems, the virtualisation of debit cards, and the promotion of instant transactions. Additionally, the move solidifies the collaboration which already connects the two banks within Partecis for the development of payment processing software, with them planning to consolidate into a reference payment processor on a global level.

Moreover, the alliance between BNP Paribas and BPCE is set to allow them to establish a common processor with a technological platform, which handles operations, back-office activities, and development. Also, the processor should be capable of integrating advanced technological standards for payments, the increasing usage of digitalisation, including the acceleration of mobile payments, expansion of ecommerce, and demand for immediacy, and the innovations provided by domestic and international schemes, such as Carte Bancaire, Visa, Mastercard, and EPI/Wero.

The press release mentions that the partnership is joined by an exclusive agreement between BNP Paribas and BPCE to develop a target business model in the form of a joint venture. According to BPCE’s officials, as part of the industrial partnership project, which follows the bank’s strategic plan, it aims to take a step towards accelerating advancement in payments in the upcoming years. By doing so, BPCE intends to provide improved quality of service to its customers, in particular the networks Banque Populaire and Caisse d’Epargne.

Commenting on the collaboration, representatives from BNP Paribas added that payment systems represent an integral component of the bank’s relationship with its customers. Considering the increase in card transactions, BNP Paribas’ objective for this processor is to create a device that is both efficient and scalable across all its European locations. In addition, the joint European platform project with Groupe BPCE intends to assist in the acceleration of BNP Paribas’ development in payment systems.

Source: Link