The Australian Competition and Consumer Commission (ACCC) has announced it will not oppose Cuscal’s proposed acquisition of payment facilitation supplier Indue. The decision follows a review that concluded the transaction is unlikely to substantially lessen competition in the market. Cuscal provides a range of financial services, including card and payments solutions, to financial institutions. Indue is a payment facilitation service that also services financial institutions.
The ACCC’s review focused on the degree of competition between Cuscal and Indue, particularly in their services to small and mutual banks, as well as fintech companies. According to ACCC commissioner Philip Williams, consolidation among smaller banks has diminished the customer base for which Cuscal and Indue directly compete.
Williams noted the importance of scale in the payment facilitation sector, stating that significant investment is required to maintain technological advancement and meet evolving customer and regulatory demands. The ACCC acknowledged that achieving greater scale through this acquisition could assist Cuscal in making necessary investments to keep pace with industry developments.
The ACCC’s assessment considered the broader range of payment facilitation services offered by both Cuscal and Indue compared to many of their competitors. Ultimately, the regulator determined that the acquisition would not significantly impede competition within the market.
