Elavon and Banco Santander confirmed their plan to launch a joint venture to provide merchant services in Spain.
Elavon and Santander have been working on the venture, called Santander Elavon Merchant Services, since the fall. Fifty-one percent of the venture will belong to Elavon and 49% to Santander. The venture will leverage the bank’s Spanish footprint to seek new merchant business through a mix of service, support and technology development.
Juan Golmayo will be CEO of the joint venture. Golmayo was previously a general manager at Iberia Cards, a Spanish issuer owned by Spanish airline Iberia, Banco Popular, BBVA and Bankia.
The new venture extends an existing 10-year relationship between Elavon and Santander. Their partnership began when the companies launched a foreign currency payment service for Spanish retailers. The two companies also have joint products in the U.K., Poland, Mexico and Puerto Rico. There are no current plans to expand the new joint venture to other markets, says Claire Gajeckyj, an Elavon spokeswoman.
Elavon, the payments unit of U.S. Bancorp, is using an innovation lab model to expand its technology, including European services such as its International Processing Platform and IP Gateway. Elavon’s products also include electronic check services, gift cards, currency conversion, multi-currency support and cross-border acquiring. It also offers EMV chip-card acceptance in Europe, where it operates through Elavon Financial Services Ltd., a Dublin-based unit of U.S. Bancorp.