Deutsche Bank and Fiserv announce joint venture for payment acceptance

The Covid-19 pandemic fueled the digitisation of the commercial payments sector and most small to medium businesses have been trying to shift their businesses to digital mode. Traditional banks and fintechs have collaborated to fill the gap, take advantage and grab market share.

This week, Deutsche Bank and Fiserv, the US-based payments company, have announced a joint venture to create a provider of payment acceptance and banking solutions. This joint venture will serve small and medium-sized enterprises (SMEs) in the German market. It will be based in Frankfurt am Main and it is pending regulatory approval.

According to the press note, this joint venture will help SMEs ‘clients adapt to the changing post-Covid marketplace by equipping them to sell their products and services across a full range of digital and in-person channels using modern payment acceptance solutions’ which will include Clover point of sale platform from Fiserv. The companies will also bring multiple payment solutions together which will accompany Deutsche Bank’s other banking offerings.

Earlier this year, Deutsche Bank launched its payments platform through 2C2P in Thailand while it collaborated with Mastercard on digital payments for businesses.

“By combining Fiserv payment solutions with our banking products, we will be able to deliver accounts, payment solutions and banking services to our SMEs,” says Stefan Hoops, Head of Corporate Bank at Deutsche Bank.

Under this joint venture, the two will start with several thousand clients as noted in the press release, Deutsche Bank together with their Postbank and Fyrst brands, has around 800,000 SMEs who will gain from this new solution. The service will also be offered to non-Deutsche bank clients.

“We will be able to help small and mid-sized enterprises in Germany do business in new ways, bringing them a compelling combination of solutions and services to streamline their payment acceptance and banking capabilities,” said John Gibbons, Head of EMEA at Fiserv.

Fiserv is a payment and financial technology company based out of the United States and the company works in account processing and digital banking solutions, card issuer processing and network services, e-commerce, merchant acquiring and processing and the Clover point-of-sale solution.