While business banking has traditionally been dominated by three banks – Standard Bank, FNB and Nedbank – the recent acquisition of First Data Resources South Africa (FDRSA) means Bidvest is about to enter the arena in a big way.
First Data, a global payment company, currently services 4,000 financial institutions around the world, and powers more than 2,800 payment transactions every second of every day – totaling $2.2 trillion in annual transactions.
While it already had an operating agreement with Bidvest, the acquisition will give Bidvest an exclusive licence agreement with the company for the next 10 years.
The new company has been renamed Bidvest Merchant Services.
This will allow Bidvest to offer a new range of merchant services aimed at South African businesses, said Bidvest Bank managing director, Japie van Niekerk,
According to van Niekerk, South Africa’s largest corporations are currently “well serviced” by the big banks, leaving a growing market for smaller and medium-sized businesses who require more focus and attention.
Specifically, he said that Bidvest Merchant Services would now be targeting companies with an annual turnover of between R5 – R500 million.