The North American investment fund controls Visa and Banelco


In Argentina, the credit card market is dominated by Visa, with 62% of the total.

This was indicated by fourteen banks that conducted Prisma to the National Securities Commission, and at the same time they show that investors will pay 60% at the time of transfer of sharesand about the remaining 40% within five years of transfer.

The size, which one forced by the National Commission for Defense Competition to follow Prisma's dominant position, also imposed another three-year period for the entity to complete their resignation from the company.

This operation involved 14 financial entities, including Santander Río, Galicia, BBVA Francés, Macro, HSBC, Itua Argentina and Patagonia.

The operation was completed only one day before the deadline given by the National Commission for Defense Competition for Prism to dispose of assets, which had been detected – in August 2016- abuse of dominant position by the company.

On Tuesday, Banco Macro (one of Prisma's partners) notified the Buenos Aires Stock Exchange about the transaction.

"Within the framework of the Disinvestment Commitment assumed by Prisma Medios de Pago S.A. and its shareholders before the National Commission for Defense Competition, The Bank, together with other shareholders, has received an offer made by AI ZENITH on that date (Netherlands) B.V. (company connected with Advent International Corporation) to acquire 1,933,051 ordinary shares with a book value of $ 1 and one vote per share owned by the Bank at Prisma Medios de Pago S.A., representing 4.6775% of its share capital, "explained Macro.

In addition, he shows: "The price offered for this stock amounted to 66,420,730 million dollars which was paid around 60% at the time of the transfer of shares and around 40% within a period of 5 years."

"After the transfer is completed, The bank will still, for now, hold 1,857,245 shares of Prisma Medios de Pago S.A. representing 4.4941% of its share capital"He added.

In Argentina, the credit card market is dominated by Visa, with 62% of the total; 22% are in accordance with Mastercard and Maestro, and the rest are for Tarjeta Naranja and American Express.

Starting this month, the highest tariff for credit card sales has decreased from 3% to 2.15%, and from 1.5% to 1% for debit transactions.

Very low rates

The key is that the National Commission for Defense Competition detects it Prisma dominates the so-called "acquisition" and "data processing" systems through very low tariffs, which are compensated at high costs throughout the business chain. This strategy works as a very effective barrier to entry for those who want to enter to compete in the procurement and processing market.

After a small initial rejection, the financial institution receives the sale of the company. By Prisma passed around 70% of payment transactions with Argentine electronic money. other than that Visa credit and debit card, they control Banelco ATM Network, the system Pay my account, electronic wallet All Payments and system Lapos (device that reads cards). A few days ago announced that they purchased a license to operate Mastercard.

Source: NA News Agency


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