UK clearing house Bacs is teaming up with LogicaCMG to market and distribute its Bacstel-IP payments technology to financial institutions worldwide.
Bacstel-IP utilises Internet Protocol and Public Key Infrastructure (PKI) to create a delivery channel for corporate payment submissions.
Under the agreement, LogicaCMG will distribute the Bacstel-IP system and will work with the clearing house to develop new functions and services. Bacs says LogicaCMG's knowledge of the finance industry combined with its experience in the payment sector globally made them a natural fit to work with.
Marion King, CEO, Bacs, comments: "This is a significant step for Bacs in moving forward with our strategic aim of providing ACH services in new markets. We will build on the extensive services we already offer in the UK by forming partnerships such as this."
LogicaCMG's says recent changes in legislation have made the payments market highly competitive. The firm cites research by the Boston Consulting Group which predicts that by 2010 the worldwide market in payment transactions will be worth $364bn in revenue to banks and generate over 400 billion transactions a year.