Big moves are being made in the European payments industry as Lufthansa is selling its corporate payments unit, Lufthansa AirPlus Servicekarten GmbH, to SEB Kort Bank AB, owned by the SEB Group, for EUR 450 million.

Lufthansa Is Exiting Payments

Announced today (Wednesday), SEB Kort Bank, which targets the Nordic market, is expanding its aim to tap the European corporate payments solution market with the deal. On the other hand, the deal will allow Lufthansa to focus on its core business going forward.

Remco Steenbergen, the Chief Financial Officer of Lufthansa, said: "AirPlus is perfectly positioned in the market and, as part of a larger financial group, will be able to realize its potential better than in the Lufthansa Group. In turn, it enables us to focus even more on further improving the profitability and capital return of the Lufthansa Group core business."

The recent divestment of Lufthansa, known for its airline operations, occurred after the group sold its catering business in April. Meanwhile, the German group agreed to buy a 41 percent stake in Italy's ITA Airways.

Lufthansa is reshaping its businesses as the airline almost went bankrupt because of Covid-19 and had to be bailed out by the German government.

Providing Payments in DACH

According to official figures, AirPlus has a diversified base of about 53,000 corporate customers with a presence in five continents. It has a strong footprint in the DACH region, as most of its revenue comes from Germany, Austria, and Switzerland. The payments unit generated EUR 231 million in revenue in 2022.

"We have followed AirPlus for many years and see a compelling strategic fit with SEB Kort," said Johan Torgeby, SEB's President and CEO.

"By joining forces, SEB Kort and AirPlus will be well placed for the future corporate payments market, benefitting from complementary strengths, synergies, and scale benefits. Furthermore, the transaction will support SEB Group's broader strategic ambitions within corporate banking in the DACH region and Northern Europe."