MasterCard to buy DataCash for £333m

MasterCard agrees to buy UK payment service provider to compete in the online payment market

MasterCard is looking to compete with online rivals such as Paypal

US credit card company MasterCard has committed to buy London-listed internet payment company DataCash for £333m.

DataCash services include secure electronic payments solutions, fraud prevention, international payment services and various added-value options such as dynamic currency conversion.

MasterCard has stated it needs to become more competitive in the global consumer cash payment and transfer market against popular web-based rivals such as PayPal.

A report in The Financial Times quoted Ajay Banga, MasterCard's chief executive, as saying: "The acquisition of DataCash will expand our already significant e-commerce merchant gateway presence in Asia and Australia to European countries and other high-growth, emerging markets worldwide."

MasterCard hopes the acquisition will allow it to:

• Grow its e-commerce business
• Expand its MiGS [internet] gateway business
• Expand DataCash market reach beyond Western Europe
• Provide more effective fraud screening and management services
• Launch a new generation of e-commerce and mobile commerce products