The payment terminals in Dutch taxis could soon end up in the hands of the American company First Data Holding, part of the large financial services provider Fiserv.
Last week, both First Data and CCV Group submitted a request to the Netherlands Authority for Consumers and Markets (ACM) for approval for the takeover of CCV by First Data. This potential acquisition could represent a major shift in the payments industry, given the importance of the POS payment terminals that CCV manages in the Netherlands. Fiserv, the parent company of First Data, is a publicly traded American company with a strong position in the global financial technology market.
The company focuses on a broad range of payment services, with a focus on payment processing and merchant acquiring—a service through which the company enables merchants to accept payments via debit and credit cards. Through its subsidiary European Merchant Services (EMS), Fiserv already has a foothold in the Netherlands, where it focuses on providing POS payment terminals to a limited extent. If approved, the acquisition of CCV could significantly strengthen Fiserv’s position in this market.
terminals
CCV Group, headquartered in the Netherlands, has primarily focused on supplying POS payment terminals in the Benelux. This includes both the sale and rental of terminals and services such as maintenance and repair. CCV's POS payment terminals are a familiar sight in taxis, supermarkets and various retail environments in the Netherlands, Germany and Belgium. The company also offers transaction processing services and merchant acquiring services, helping entrepreneurs to process payments efficiently.
The potential of the acquisition of CCV by First Data is relevant for the Dutch market, as CCV is a major player in payment transactions and has extensive experience with POS solutions. An acquisition by Fiserv would not only give the American technology giant direct access to an extensive network of payment terminals in the Benelux, but also provide a springboard to further expand in Europe. The fact that Fiserv is already active with EMS in the Netherlands could ease the transition, and CCV's expertise in POS solutions would give Fiserv a more complete proposition.
De ACM, which ensures that markets function fairly and transparently, must determine whether the takeover endangers competition. The Netherlands Authority for Consumers and Markets assesses this type of takeover primarily on the basis of possible market disruption and the impact on customers and small businesses. Since CCV en Fiserv both are active in the field of payment transactions and POS services, it is possible that the ACM will look extra critically at the consequences for competition in this sector. If the takeover is approved, this could mean further consolidation of the market, which could lead to less freedom of choice for entrepreneurs when selecting payment solutions.
competition
In addition, there is also increasing international competition in the Dutch market for payment solutions. The rise of digital payment methods such as QR codes, contactless payments and mobile payment solutions such as Apple Pay and Google Pay, means that companies increasingly have to innovate to remain attractive. For Fiserv, the acquisition of CCV would not only mean access to a physical network of terminals, but also to valuable expertise in managing POS solutions that are needed to keep up with innovative, digital payment methods.
With this potential acquisition, Fiserv, via First Data, to position itself more strongly to serve a larger part of the European market. This could lead to more investments in technologies and services that further strengthen Fiserv's position as a service provider. However, whether it also leads to better services or lower prices for entrepreneurs and consumers depends on market forces and the possible conditions that the ACM sets when approving the takeover.
