Australia-based payment services provider Cuscal has unveiled plans to acquire Strategic Payments Services (SPS).
Upon completion of the transaction, Cuscal plans to merge the two organisations into a single entity.
The new entity will represent approximately 10% of the Australian electronic funds transfer (EFT) market.
Craig Kennedy, managing director of Cuscal, said combining Cuscal’s and SPS’s complementary strengths in issuing and acquiring would bring significant opportunities to clients of both companies.
The combined entity is expected to service more than 100 clients across a number of industries including financial institutions, mutual banks, credit unions, insurers, government departments and agencies, and major retail corporations.

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By GlobalDataThe combined infrastructure would support switching technology that enables issuers and acquirers to access the payment systems, a real-time payment platform and 24×7 fraud prevention engine and connections to all cards and payment schemes.
The infrastructure would also support a digital and mobile infrastructure, switching for approximately 9000 ATMs, including the rediATM network.
Under the agreement, the owners of SPS, Bendigo Bank and MasterCard, will take an approximate 10% stake each of the final combined entity.
Subject to shareholder approval, the transaction is expected to close by the end of the year.