To acquire the Bank of Ireland’s U.K. credit card business, mobile-first company Jaja will pay an initial cash consideration of $671 million at current rates. The FinTech firm will also serve as the consumer credit card issuer for the AA and the bank’s U.K. consumers, according to reports.
Jaja Finance CEO Neil Radley said, according to reports, “This announcement with Bank of Ireland U.K. is an exciting and important development in Jaja’s journey and is part of our strategy to create partnerships that will help more people embrace a simpler way of managing credit.”
The credit business of the Bank of Ireland encompasses key accounts such as the post office, the U.K.’s Automobile Association and a Bank of Ireland branded card. (It reportedly does not include the bank’s Republic of Ireland commercial card business.) However, the bank put the credit business up for sale with a larger strategy to divest some of its operations.
Bank of Ireland U.K. CEO Des Crowley said in a statement, per reports, “Jaja is an innovative company which shares our commitment to delivering outstanding customer service. We are proud to partner with them and bring their next-generation credit card to customers across the U.K.”
The report comes as news surfaced that the U.K. FinTech market had a strong showing last year, with venture capital and private equity investments hitting $3.3 billion. And private equity investments in U.K. FinTech startups increased 57 percent to $1.6 billion in 2018, according to an industry trade group, while venture capital investments were $1.7 billion.
Innovate Finance Chief Executive Charlotte Crosswell said, according to reports in February, “It is very encouraging to see that investment continues to grow in the U.K. FinTech sector, reaffirming its position as a leading global financial and technology center. The U.K. has a unique position across financial services, technological innovation, regulators and government, which all play a crucial role in this impressive growth journey.”