RIL in talks with AmEx for payment gateway: report
20 May 2011
Mukesh Ambani's Reliance Industries Ltd is negotiating with US-based finance company American Express to form a joint venture that could offer services such as payment gateways, says a report.
Both companies have been talking since October last year when American Express chief executive officer and chairman Kenneth I Chenault visited India and discussed the possibility of working together with Ambani, said The Economic Times, citing two unnamed people aware of the development.
"The company is in discussions with American Express, and they are exploring a wide range of finance related services," said one of them.
"A payment gateway is one area in which RIL needs expertise as it forays into broadband. But no final agreement has been signed," said the other person in the know, according to the report.
A payment gateway provides a secure connection between a service provider and bank for processing online payments.
A spokesperson for American Express said they were looking for "smart ways" to expand in India but declined to comment on any specific transaction. "As a matter of policy, we don't speculate on market rumours. Over the last 90 years, American Express has built a successful and fast growing payments business in India. India is key to American Express' growth strategy and we are looking for smart ways to expand in emerging growth areas."
New York-headquartered American Express Co or AmEx, is a $25-billion diversified global financial services company headquartered in New York City. It is best known for its credit card, charge card, and traveller's cheque businesses.