PARIS — MasterCard Europe and Europay France plan to integrate their operating structures in France, a priority market for MasterCard in Europe.
The integration, which was announced this week, is expected to support French banks' efforts to provide competitive payment services. Under the agreement, a new company will be created.
Additional terms of the agreement have not been disclosed.
According to a news release, the transaction is expected to be completed April 1, allowing French and international banks in France to have a direct relationship with MasterCard Europe for payment services.
Emmanuel Petit will lead the new company, overseeing the integration process before assuming the role of general manager April 1. Petit, who joined MasterCard in 2002, leads MasterCard's relationship with a key banking client in Europe.
"This agreement is essential to strengthening our direct presence in this market, and ensuring that French banks can have a single point of contact for their electronic payment needs," said Alfredo Gangotena, general manager of MasterCard Europe for continental Europe. "It also means that French consumers and retailers can enjoy the benefits of a more competitive and richer range of card payment products and increased acceptance."
The deal follows the precedent set by MasterCard International and Europay International in 2002, when the two companies merged their pan-European activities.
This newest deal is timely, MasterCard says, given the establishment of SEPA, the Single Euro Payments Area — a financial infrastructure that demands cross-border payment instruments be made available in all Euro-zone markets. MasterCard says it expects to help banks compete domestically and internationally by assisting them with SEPA compliance.
The influence of SEPA has already directly impacted the French domestic market by allowing the issuance of co-branded cards in France since October 2007.
The French market often leads payments innovation. French banks were amongs the first to embrace EMV/dhip technology, and November 2007 marked the French launch of Europe's first MasterCard PayPass contactless payments trial involving co-branded cards.
