MasterCard (NYSE: MA) has purchased a 12.5% stake in ElectraCard Services, an Indian provider of processing services and software for credit card and debit cards.
“This investment will extend our processing footprint and create more value for our customers in the Asia-Pacific region, the Middle East and Africa,” said MasterCard Worldwide president and chief executive Ajay Banga sin a statement on Thursday.
ECS, has 1,000 employees and has two development centers located in Pune and Chennai. The company processes more than 6 million transactions per month.
Banga said that MasterCard may acquire a larger stake in the company, but did not place a timeframe on a purchase. He added that there’s a huge percentage for growth in India, as 97% of financial transactions are currently done by cash.
“More than half of India’s population is under 25 which have a totally different attitude towards cash, and 300-500 million are still to enter the middle class arena,” Banga said.
MasterCard Incorporated (MasterCard) is a payment solutions company that provides a variety of services in support of the credit, debit and related payment programs of approximately 23,000 financial institutions and other entities that are its customers. Through its three-tiered business model as franchisor, processor and advisor, the Company develops and markets payment solutions, process payment transactions, and provides support services to its customers and, depending upon the service, to merchants and other clients. MasterCard manages a family of payment card brands, including MasterCard, MasterCard Electronic, Maestro and Cirrus, which the Company licenses to its customers. In December 2008, MasterCard acquired Orbiscom Ltd.
Shares of MA traded up 0.62% during mid-day trading on Thursday.
