Commerzbank and Global Payments are planning a joint venture targeting German SMEs, Commerz Globalpay GmbH.
The bank and payments provider, based in Frankfurt and Atlanta, US, respectively, aim to launch the JV at some point in H1 2024 with a focus on offering payments solutions to German SMEs.
Global Payments’ announcement of the partnership explained that the JV will be based in Frankfurt and deliver omnichannel payment and software solutions. The US firm will hold a 51% stake and its German partner the remaining 49%.
Cameron Bready, President and CEO of Global Payments, remarked: “Commerzbank is the ideal partner to expand our presence in Germany to deliver industry-leading services to merchants across the country.
“This joint venture significantly enhances distribution for our distinctive payment offerings and commerce enablement solutions in an attractive growth market where there are substantial opportunities to digitise the payment experience.”
Further specifics of the partnership see the duo targeting a ‘one-stop-shop’ status for German banks SME needs. Plans include digital payments, such as smartphone-based apps for acceptance of mobile payments without a card reader.
Also included are modern card terminals and e-commerce/mobile payments solutions, central to the JV’s omnichannel ambitions, and services such as cloud-based point-of-sale software, customer loyalty programs, an analytics and customer engagement platform.
As mentioned by Bready, partnering with Commerzbank marks a significant expansion for US-based GLobal Payments in the European sector. The partnership is also a major milestone for Commerzbank, as the firm continues to develop its offering in its native market.
Commerzbank states that it currently transacts around 30% of German foreign trade and has a base of 26,000 corporate clients. The JV builds on Commerzbank’s product development efforts in 2023, with notable progress made in blockchain and cryptocurrency.
“With this joint venture with Global Payments, we are investing in modern forms of payments at the highest level,” said Thomas Schaufler, member of the Board of Managing Directors for Private and Small-Business Customers at Commerzbank.
“Through simple solutions, new products, and technologies, provided by Global Payments, we are creating an optimal experience for the Commerzbank customers. This makes the project an important part of our strategy update to create added value and excellence for our customers.”
