AIB has agreed to sell its remaining stake in AIB Merchant Services (AIBMS) to Fiserv, its longtime partner. The deal is expected to close later this year, once it receives regulatory approval. Customers will not need to take any action, and there will be no change to how they use AIBMS. The company said business will continue as usual during and after the transition.

AIBMS was established in 2007 as a joint venture between AIB and Fiserv. As then, it has grown into one of Ireland’s largest payment service providers. It also ranks among the top e-commerce payment processors in Europe. The firm said the joint venture helped many businesses accept card payments easily and securely.

AIB expects Capital Boost From AIBMS Stake Sale

Once the deal is completed,AIB expects a positive impact on its capital. The bank said it will add about 35 basis points to its core capital ratio (CET1). Last year, AIB reported €34 million in income from its share in AIBMS, listed under equity-accounted investments.

Even though AIB is selling its stake, it will continue to work with Fiserv. AIB will refer business customers who need payment services to AIBMS. The bank said this ensures customers will keep getting access to trusted payment tools.

AIBMS will keep its name for a while under a short-term brand agreement.This allows time for the AIB brand to be gradually removed from the business. This helps everyone get through the change more smoothly.

AIB leader,Colin Hunt said the decision follows many triumphant years of partnership with Fiserv. He revealed that Fiserv has the tools and experience to grow AIBMS under full ownership. According to Hunt, AIB will still support its customers through its ongoing relationship with Fiserv.

Fiserv has the tools and experience to grow AIBMS under full ownership.

Fiserv Plans to Grow Its Clover Platform Through AIBMS

Katia Karpova, who leads Fiserv in Europe, said the two companies built a strong relationship over the years. She revealed that Fiserv looks forward to helping more businesses across Ireland and Europe. The company remains focused on providing reliable, advanced payment solutions.

Fiserv plans to expand the reach of Clover, its smart point-of-sale and business platform, through AIBMS. The company said it wants to bring this system to more shops, restaurants, and service providers. It believes there is strong potential for growth in Ireland and across europe.

AIB said selling its share in AIBMS is part of a wider plan to focus on core banking services. By staying connected with Fiserv through referrals, AIB can still support business customers. the bank noted that this helps maintain a clear link to the services many customers rely on.

Fiserv said full ownership of AIBMS will allow it to invest more and respond faster to customer needs. The company wants to focus on technology, local support, and expanding its reach in digital payments. The goal is to keep improving the tools offered to businesses.

According to the update, the value of the deal was not disclosed. But both firms said they are committed to working closely together. Customers can expect the same service they’re used to-and more developments in the future.

About Amelia Monroe

Amelia Monroe is a financial journalist covering fintech, investments, and market trends. With a background in economics, she provides insightful analysis on the latest developments in the financial industry.