Santander Buys Fintech Firm Mercury TFS for $33.5 Million

Banco Santander, a major Spanish bank, on Friday announced its plan to buy a majority stake in Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term company Mercury TFS for 30 million euros ($33.54 million).

This came as a part of Santander's digital strategy to accelerate growth by buying up corporate stakes and thus strengthening its international trade offer and consolidate its position as the bank of choice for SMEs and corporates with international operations.

Santander will acquire 50.1 percent of the fintech company, and one-third of the total investment will be paid for newly-issued shares.

The announcement also detailed that Mercury TFS' chief executive officer and head of technology will continue to head up the company, and will continue to be partners.

A promising company in the fintech arena

The Madrid-headquartered fintech company develops trade financing software for its clients and has a presence in Spain, Mexico, Chile, and Colombia. The Spanish bank is also a customer of the fintech company for years.

Following this deal, Mercury TFS will also enable the bank to digitalize internal process management, allowing greater control and operational efficiency.

The funds from the acquisition will be utilized by the company to enable new services and boost growth in customer numbers and markets.

"The investment accelerates our plans to build a service platform for SMEs and international companies to better serve our customers worldwide," Javier San Félix, the head of Santander's global Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term services, said, commenting on the major deal.

"We are also helping to globalize Mercury TFS, a software company with huge potential and a team with enormous talent, by reinforcing their technical and commercial teams and complementing their already broad product range."

In November, Santander also inked another major deal, buying Ebury, a UK-based payments platform, for £350 million (around $453 million). Then also, the Spanish bank bought 50.1 percent of Ebury's shares, putting it in control of the company.