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Travelport deal will drive eNett VANs beyond travel

August 4, 2014 Corporate, Headline News No Comments Email Email

egtmedia59Travelport Worldwide has increased its ownership stake in eNett International, its joint venture with PSP International established in 2009 to provide integrated payment solutions for the travel industry. The deal was announced yesterday.

Since the joint venture’s inception in June 2009, Travelport has held a majority stake of 57% whilst its partner, PSP International held the rest. The successful first five years of operation has seen the business develop from incubation, through launch and it has now become a growing part of Travelport’s Beyond Air portfolio and part of the Travelport strategy to redefine travel commerce.

In the latest deal, Travelport has elected to acquire an additional 16% from PSP International, raising its holding to 73% in a transaction which values the eNett business at USD 450 million.Anthony Hynes, eNett international managing director and chief executive

eNett has a strong Australian presence and was promoted in June at Beyond Tomorrow, an industry evening at the Mint in Sydney. The evening also publicised the Discover Travelport Merchandising Platform, which runs with the Travelport Smartpoint desktop and seamlessly integrates eNett VANs. VAN stands for Virtual Account Number.

Travelport’s global head of sales, Matt Arthur, said eNett VANs delivered all the advantages of credit cards, without the attendant risks. They were effectively single-use cards, using 16 digits like a physical credit card but without any chance of the card being compromised.

The deal announced yesterday sees PSP International enter into a long term agreement with eNett to provide various banking services to the company including PSP International becoming the primary issuer of the VANs used by eNett.

eNett would now also be able to expand its innovative platform and operating system outside the travel industry, an issued joint statement said.

“eNett is a significant element in realising Travelport’s goal to redefine travel commerce, enabling a range of state-of-the-art and innovative alternative payment methods for B2B transactions which represent a considerable global market opportunity,” commented Gordon Wilson, president and chief executive of Travelport.

“Travelport felt that the time is right to own more of this growing business and this deal provides the opportunity for the two shareholders in eNett to play to their respective strengths.  These are, on the one hand, the banking services expertise offered by PSP International, and, on the other hand, the platform, the global network of travel agency and travel product supplier relationships and the system capabilities that Travelport offers.”

Anthony Hynes, eNett international managing director and chief executive, said that following the signing of a significant multi-year extension of eNett’s partnership with MasterCard announced last month, “this new agreement allows eNett to further leverage the expertise of its respective shareholders as it continues to expand into other markets and verticals around the world.”

“The new shareholding agreement enables PSP to cement its relationship with Travelport at a broader level and for the longer term,” Rob Bishop, managing director of PSP International comented.

“We are looking forward to continuing to provide eNett with access to a range of new and innovative payment services, including more flexible transaction funding models and ongoing support for new products and services.”

Since launching eNett VANs in 2011, eNett has enjoyed global success, helping to facilitate supplier payments for customers across 47 countries around the world. Using unique MasterCard VANs, eNett provides travel companies with a fast, easy and secure way to pay, or to be paid. eNett VANs reduce risk of fraudulent transactions and improve overall payment, reconciliation and tracking processes.

Edited by Peter Needham

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