Bahrain Electronic Network for Financial Transactions (Benefit) has signed a joint venture with card payment solutions provider Network International (NI) to provide third-party ATM and card processing services for banks in the region.
The deal marks the strategic alignment of two industry leaders, and is aimed at responding rapidly to GCC's growing demand for globally proven third-party card processing practices and solutions, as well as to accelerate the development of the cards industry across the GCC.
Given the impact of the joint venture, more than 500,000 cards will be hosted with the JV over the next five years, with revenues projected at nearly $10 million (Dh36.7m) for the period. It is expected that JV's share of the target market will be between eight and 10 per cent.
Abdulwahid Janahi, CEO of Benefit, said: "This alliance is a coming together of two like-minded entities with a view to provide exceptional breadth of services, supported by the depth of individual competencies.
This JV will allow diversification of Benefit's portfolio while offering our customer banks globally proven third-party ATM and card processing practices. The new alliance will further allow us, as one entity, to build strength upon strength, and compete more effectively in the cards market. This alliance is timely for Bahrain and the GCC countries, and a landmark achievement in many respects."
Abdulla Qassem, Chairman, Network International and Vice-Chairman of the joint venture, said: "Partnerships are about synergies and this alliance is a clear result of two separate entities building a valuable shared platform to drive our respective and shared ambitions. The agreement will deliver seamless integration and be operational from day one, offering our new partners significant advantage."