SBI shortlists 3-4 firms for merchant acquisition JV

The country's largest lender, State Bank of India (SBI), has shortlisted 3-4 companies for its proposed joint venture to foray into the merchant acquisition business and hopes to finalise the partner by March, a top official said today.

"We have shortlisted 3-4 companies for the proposed JV. We expect to select the final partner over the next 2-3 months," SBI Deputy General Manager (New Business) Brajesh Varma told reporters here.

SBI decided to foray into merchant acquisition business with a view to increase its fee-based income and had invited proposals to select the JV partner last year.

Merchant acquisition activity involves settlement of dues on purchases made on credit cards. The lender would set up point of sale terminals at merchant outlets pan-India for the swiping of cards. The managed services would include deployment of POS terminals at customer location, merchant training and maintenance among others.

SBI received interests from around 10-12 global players, of which three companies have been short-listed now, Varma said.

Varma, however, declined to divulge the identity of three entities, which have been shortlisted.