Payment solutions provider Nets is buying two OCBC units that handle payment services for $38 million.
The deal involves Nets acquiring Banking Computer Services (BCS) and BCS Information Systems (BCSIS). BCS manages and operates the clearing and payment infrastructure for the Singapore Clearing House Association, while BCSIS designs and develops clearing and payment technology solutions for the financial services industry.
Once the $38 million transaction is completed - expected by June - the two will become Nets subsidiaries but will still operate as independent entities.
Nets said the acquisition will "enable it to deliver payment innovations that are simple, swift, secure and accessible to its customers".
BCS, which was set up 1976, operates core services like Fast And Secure Transfers (Fast) and inter- bank Giro. The common goal with Nets is bringing "electronic payment services that are trusted, secure and efficient", said BCS managing director Jimmy Quek.
BCSIS also provides bureau services that include cheque processing, lockbox services, and document digitisation and imaging.
BCSIS managing director Ricky Lim added that the firm has "created visionary payment technology solutions since 1988", noting its "high-speed, high-volume precision clearing and payment systems" that will complement Nets.
Nets chief executive Jeffrey Goh said: "We believe this move is complementary to Nets' core electronic payments business and all parties shared the common vision to hasten digital payments adoption in Singapore."
Monetary Authority of Singapore managing director Ravi Menon noted that the move is timely "and fully aligned with Singapore's electronic payments road map".
He added: "The creation of a single operator for Fast, inter-bank Giro and Nets Eftpos (debit payment system) will strengthen synergies across these key retail payment systems, encourage more innovative and inter-operable payments solutions, and spur the adoption of e-payments by consumers, businesses and the Government."