The new Consortium will hold a 45% stake in the newly restructured organization with DBS transferring its existing stake to the Consortium. The remaining 55% is owned by NETS’ existing shareholder banks, namely Keppel TatLee Bank, Oversea-Chinese Banking Corporation, Overseas Union Bank and United Overseas Bank.

NETS and its shareholder banks undertook a strategic review of its role and functions in response to the liberalization of the banking sector last year. The review concluded that NETS needed to change its mode of operation and seek new directions to develop the organization into a world-class payment service provider, within and beyond Singapore. A list of eight potential strategic partners were identified and invited to submit proposals in the exercise.

A Steering Committee, which included the CEOs of NETS’ shareholder banks, CEO of NETS and independent advisors, was formed to evaluate the proposals. Consulting firm, PricewaterhouseCoopers Corporate Finance, was engaged to advise and assist in the evaluation. Five proposals were received from local companies and multinational corporations in the payment industry. The proposals were assessed based on various factors including the access to new e-payment and Internet-related technologies, product and market knowledge, distribution channels and new geographic market.

In the new economy, survival in a dynamic and competitive business environment depends on one’s ability to innovate, adapt and change. For NETS to develop into a world-class payment service provider, we need to achieve greater economies of scale, said Mr Wee Tew Lim, Chief Executive Officer of NETS. Our partnership with the SingTel/DBS Consortium will broaden our reach around the region, accelerate our growth, and meet challenges of rapid technology change and customer demand for quality integrated services.

Mr Lim Chuan Poh, SingTel’s Executive Vice President of Corporate Business said, Our vision is for NETS to be the preferred regional solution provider for payment and processing services, capable of accepting multi-media and multi-channel transactions on behalf of institutions. SingTel and our partners will combine our strengths and expertise to offer NETS a complete payment and settlement transaction infrastructure. SingTel will offer resources such as infrastructure connectivity, systems integration and regional managed hosting services.

He added: Customers will enjoy seamless service in a secure and efficient environment whether they are making payments via the electronic or mobile commerce mode both in Singapore and abroad. With the increased use of mobile communication devices, we believe that NETS has the unique opportunity to become a significant regional payment gateway for mobile commerce transactions. We envision mobile phone users across Asia using their mobile phones as a personal payment device in their hands which they can use to initiate payment anytime, anywhere.

This consortium provides an excellent platform for us to build one of Asia’s first integrated payment gateway that handles multi-media, multi-channel transactions for financial institutions, merchants and customers, said Bastari Irwan, Managing Director, E-Business Group, DBS. Given DBS’ depth of experience and know-how in providing electronic payment solutions and financial settlements to both consumers and companies, we complement SingTel’s strengths to immediately create an enhanced company that brings immediate access to technology, infrastructure and know-how in financial settlements, and access to over 6 million mobile customers and 5 million banking customers, Irwan added.

SOURCE: COMPANY PRESS RELEASE