With smarter phones and slicker tablet computers the rage, Visa sees greater global potential for mobile e-commerce payments, and that helped drive the top credit and debit card processor to acquire CyberSource.
Visa said it will pay $26 a share or about $2 billion to acquire CyberSource, the online payments processor for 25 percent of e-commerce dollars transacted in the United States.
CyberSource serves more than 295,000 merchants through CyberSource and Authorize.net brands. Clients include British Airways, Home Depot, Facebook, Google and many small businesses.
Visa – as does smaller competitor MasterCard – wants a bigger slice of e-commerce, and it’s taking a big step in that direction with the acquisition. Visa will now drive international expansion of CyberSource products and services.
CyberSource’s revenues are now generated primarily from U.S. client operations, “leaving tremendous opportunity for global growth,” Visa said.
“…As e-commerce increasingly migrates to mobile devices, we believe the combination of Visa and CyberSource technology and services will position Visa to lead in mobile e-commerce,” said Joseph W. Saunders, chairman and CEO of Visa Inc.
The two companies have partnered since 1999, more recently on risk models integrated into CyberSource’s automated fraud management solutions.
“By joining forces with the world’s foremost payments company, we will have the opportunity to utilize Visa’s regional expertise and global presence to drive international adoption of CyberSource in key geographies,” said Michael Walsh, president and CEO of CyberSource.
Visa will utilize CyberSource’s expertise in fraud management services and secure payment data hosting in the e-commerce arena.
[...] PayPal has been trying to years to forge closer relationships with airlines outside of their North Amercian stronghold, and only last week Cybersource was purchased by Visa for $2 billion. The headline in eCredit Daily said it all: Visa Eyes Mobile e-Commerce with CyberSource Buy. [...]