SafeCharge, a provider of payments services and technology, has formed a strategic partnership to acquire a 5% equity stake in German-based FinTech Group by investing about EUR10m.
As part of the deal, FinTech’s BIW Bank subsidiary will provide SafeCharge clients banking services including banking transaction services, mobile payments and debit card.
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The partnership will see SafeCharge leveraging BIW Bank’s platform to deiver a full suite of banking services to its client base.
Moreover, Safecharge is planning to roll out a new digital wallet service in Germany called Pay.com that serves as an alternative to traditional banking, payment and money transfer services.
Under the terms of the deal, board of FinTech group have approved a capital increase of 810,000 new shares at EUR12.45 per share, with total proceeds from the sale totalling EUR10, 084,500.
FinTech Group CEO Frank Niehage said: "Based on our technology expertise and our regulatory platform we will be able to help SafeCharge to jumpstart new business lines by offering their retail and corporate customers European-wide comprehensive banking services."
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By GlobalDataSafeCharge CEO David Avgi said: "The partnership marks another step in our strategy to create a new generation of financial services and payments for a global customer base.
"The business we are building is expanding into new geographies, market verticals and services, increasing our presence throughout the payments system. Our investment in FinTech Group underscores the importance of the partnership to the Group and our commitment to growth."
