SBI ends Visa JV For Merchant Business

Mumbai: State Bank of India, the largest bank in the country, has canceled its plan to establish a joint venture for Visa Inc. and Elavon Inc. merchant acquiring commercial disputes by sharing technology.





Joint venture of SBI's payment service, a wholly owned subsidiary of SBI, and Visa Inc. and Elavon, Inc. was in May 2010. "State Bank of India has informed BSE (Bombay Stock Exchange), the bank has canceled a joint venture negotiations for the creation of Visa Inc. and Elavon Inc. merchant for their business," says Bank.

"The government has decided to repeal the joint venture negotiations and Visa do not want to share technological expertise in building companies," a senior official from SBI said. "State Bank of India wanted to build a house on the technology "said the official, who asked not to be called. E-mail sent to Visa get anything to respond.

Currently, private banks like ICICI Bank, HDFC Bank and Axis Bank are key players in the commercial area of ​​procurement. ICICI Bank has launched a subsidiary, ICICI Merchant Services (IMS), a joint venture between ICICI Bank and First Data, e-commerce and payment services.

"This is a capital intensive business, you need to invest in the construction of a new technology to meet the requirements of the merchant," said Amrish Rau, vice president and regional director of First Data Corporation (FDC) . "Factor cost is high you have to break into new towns and villages."

The merchant point of sale or POS terminals in India increased by 21% against 12% in the 2010-11 annual report of 2009-10, said Atos World Line Payment Card Industry Indian Industry Survey in 2011. Number of payment terminals in the country at the end of March 2011, was the 576550th

Axis Bank Contacts on the map represents 32% of 1,83,000 shares. ICICI Bank is second with a market share of 31% and 1,80,000 contact with the HDFC Bank, which has a market share of 21%, and 120,000 terminals. Three of the largest banks in over 80% market share.