Barclays partners with Brookfield

The business helps the UK’s economy, processing billions of pounds of payments annually for SMEs and domestic and international corporate clients. The partnership will support its growth by broadening the range of services offered and improving the client experience. The two companies plan to create a standalone entity over time.

Optimising the bank’s payment acceptance business

Barclays’ client relationships and experience in UK payments will benefit Brookfield’s global private equity expertise in payments, tech, operational improvement, and corporate carve-outs, which will ensure that the business is well-positioned for growth.

The bank plans to invest GBP 400 million in the business, the majority of which will occur in the first three years of the collaboration. Brookfield will be entitled to a financial incentive linked to the business’s performance. After three years, and up to seven, Brookfield may acquire a 70% ownership interest in the business at a market value to be determined at the time, and subject to certain pre-agreed conditions, including the full recovery by Barclays of its investment supporting the transformation. Upon the acquisition, the company’s initial financial incentive will convert into an additional 10% shareholding in the payment acceptance business, resulting in an 80% ownership.

Barclays strongly believes in the long-term prospects of the business and, following the intended sale, expects to retain an ownership interest of approximately 20%. The business will continue to use the Barclaycard Payments brand and will be the sole payment acceptance services provider to Barclays’ clients for a minimum of ten years.

The bank aims to better support its clients’ interests and transform its payment acceptance business in a three-year plan to become a simpler, better, and more balanced financial institution. Its goal is to provide integrated connectivity, end-to-end service and tailored tech solutions. Brookfield believes that payment systems need to adopt a digital-first and data-led approach to provide better solutions, as this is why it draws from its global expertise to partner with Barclays and deliver the operational transformation required to create better solutions.