ACI Worldwide Acquires Leading Global eCommerce Payments Solutions Provider, PAY.ON
ACI Worldwide, a leading global provider of electronic payment and banking solutions, and PAY.ON, a leader in eCommerce payment gateway services, announced that they have entered into a definitive transaction agreement. Under the terms of the agreement, ACI will acquire 100 percent of the equity of PAY.ON in a combination of cash and stock valuing the company at €180 million (approximately $200 million).
Based in Munich, Germany, PAY.ON delivers a white label global payment gateway solution to payment services providers (PSPs) and acquirers globally. PAY.ON’s solution features connectivity to more than 300 alternative payment methods and card acquirers in more than 160 countries. This global coverage helps merchants and PSPs to increase international revenues, dramatically reduce costs and risk, and accelerate market expansion.
PAY.ON’s advanced SaaS-based eCommerce gateway solution complements and strengthens ACI’s UP Retailer Payments offering, positioning ACI as a highly differentiated omni-channel payments leader. The combined ACI/PAY.ON solution provides merchants and PSPs the ability to deliver a seamless omni-channel customer payment experience in any retailer modality – in store, mobile, online – with both on premise and SaaS delivery options.
The global eCommerce market is growing rapidly, with global eCommerce volume expected to grow at a 17 percent CAGR through 2019. In addition, as the global eCommerce market continues its rapid ascent, the need for cross-border eCommerce payments is a particularly fast growing sector. With business and consumer demands continuing to globalize, cross-border eCommerce volume is expected to grow at an 18 percent CAGR over the same period.
“PAY.ON brings world-class eCommerce payment and Card Not Present (CNP) capabilities to ACI. Its SaaS-based business model, coupled with its strength in alternative payments and cross-border capabilities, allow us to expand our eCommerce platform broadly into new geographic regions,” said Phil Heasley, president and CEO, ACI Worldwide. “Our acquisition of ReD in 2014 strengthened our position as a market leader in the CNP payments risk management market, and this acquisition further solidifies our position as a leading omni-channel payments provider.”
“We’re excited to become part of the ACI team, and are pleased that our eCommerce gateway technology will play a strategic role in fulfilling ACI’s Universal Payments vision of enabling a complete set of end-to-end payment services,” said Markus Rinderer, CEO and co-founder, PAY.ON. “The combination of our eCommerce payment gateway capabilities and ACI’s UP Retailer Payments offering will give merchants around the world the most complete, flexible and consistent omni-channel payments experience.”
ACI’s Universal Payments (UP) portfolio of solutions orchestrates all aspects of payment processing for any payment type, any channel, any currency and any network.