US payments processor First Data has signed an agreement to acquire an 80% stake in Korea Mobile Payment Services (KPMS). Financial terms of the deal were not disclosed.
Established in 2000, KMPS provides financial payment services, including value-added network and terminal interface services to 250,000 local merchants focusing on small and mid-sized customers.
Under the terms of the deal, First Data will acquire the majority shareholding in the firm and lead operations in Korea. The vendor says the acquisition will enable it to extend its full portfolio of commerce and payment services to customers across South Korea.
Nigel Lee, president of China and North Asia, First Data International, says: "South Korea is a fast-growing credit card market with huge potential considering it is one of the top five countries in terms of transaction volume in the world with almost 100% merchant acceptance of payment cards.
"KMPS' well-established merchant portfolio and transparent management philosophy are excellent complements to our current Asia business."
First Data says the acquistion reinforces its Asian markets expansion plans and complements its existing data centre operations in Shanghai.
The acquisition is expected to close by the end of 2005.