Last Updated on September 5, 2023 by Robert C. Hoopes
Barclays Plc is said to be exploring the possibility of selling a stake in its payment processing unit for UK merchants. The goal is to find a strategic partner that can help expand the business and raise capital. According to estimates, the unit could be valued at a minimum of £2 billion.
As part of its ongoing review into global payment activities, Barclays has begun discussions with potential bidders and has even distributed a presentation on its domestic merchant acquiring unit to interested parties. However, it is important to note that these plans are still in the early stages and could be altered or dropped entirely.
In addition to evaluating options for its UK business, Barclays is reportedly also gauging interest in its German consumer finance operations. This move is in line with the bank’s broader review of its global payments footprint, which was launched earlier this year.
Barclays is not the only European lender considering such a move. Other banks in the region have also taken steps to monetize their payments operations. This trend reflects the increasing focus on payment processing as a lucrative business opportunity.
By finding a partner with strategic knowledge and resources, Barclays aims to accelerate the growth of its payment processing unit while raising much-needed capital. As the financial industry continues to see advancements in technology and changing customer preferences, banks are recognizing the need to adapt their payment services to stay competitive.
The potential sale of a stake in the payment processing unit is part of Barclays’ broader efforts to streamline its operations and focus on its core strengths. By divesting non-core assets, the bank is looking to boost profitability and create value for its shareholders.
As the discussions progress and potential bidders show interest, it will be interesting to see how this move unfolds. For now, Barclays is actively seeking a partner to help take its payment processing unit to the next level and secure its position as a key player in the UK merchant services market.