Mastercard, a New York-based financial services company, as per recent press release statement, has dropped off its plans to acquire Earthport and instead announced the acquisition of Transfast, a New York-based international money transfer and cross-border payments platform. Financial details of this acquisition deal were not disclosed.
Last month, in Feb. 2019, Mastercard was in a bidding war with its arch rival VISA, to acquire Earthport. The situation intensified when VISA pitched its £247 million offer to outgrow Mastercard.
Recently, Mastercard explained itself saying that prior to this acquisition, it lapsed its offer for Earthport, to focus on the integration and expansion of Transfast. With Transfast acquisition, Mastercard plans to up its game by improving its compliance capabilities and offering foreign exchange tools. Currently, Transfast offers support to the Mastercard Send solution for business-to-business (B2B) and person-to-person (P2P) transaction services.
According to Michael Miebach, chief product officer for Mastercard, this acquisition of Transfast further advances Mastercard’s leading position in meeting business, government and consumer payments need – whether its business-to-business (B2B), person-to-person (P2P) or other flows.
Transfast’s vast provider network covers over 125 countries across Asia, Europe, Africa, the Americas, and Australia. Its proprietary network integrates 300+ banks and other financial institutions for services to its partners via APIs, SFTP, web, and mobile product applications. Furthermore, Transfast has the backing and support of private equity investment firms GCP Capital Partners and Apis Partners.
The acquisition deal, which is expected to close in the second half of 2019, is subject to customary closing conditions.