Barclays has entered into a long-term partnership with Brookfield Asset Management to transform its payment acceptance business, previously known as its merchant acquiring operations. The two firms will gradually establish the business as a standalone entity. Barclays brings its established presence in UK payments, while Brookfield contributes experience in private equity and operational transformation. As part of the agreement, Barclays plans to invest around $534 million in the business over the next three years. Brookfield will provide strategic and operational support and, based on performance, will be eligible for a financial incentive that aligns both firms’ long-term interests.
Starting from year three and up to year seven, Brookfield may acquire up to a 70% stake, with an additional 10% share granted upon completion of the sale. This move is designed to improve services, expand offerings, and enhance future value, while having no material effect on Barclays’ current financial targets. Sir Ron Kalifa, Vice Chair and Head of Financial Infrastructure, Brookfield stated, “We’re excited to draw on our deep global payments expertise to partner with Barclays and together deliver the operational transformation required to create the market leader, well-positioned to drive the growth of the UK’s digital economy with innovative and integrated payment solutions.”
