Agreement has been reached to end the uncertainty over the Mondex franchise in Asia.
MasterCard International is to set up a joint venture with Hongkong Bank to market and develop Mondex products in 13 countries in the region.
The United States-based credit card association will have a 51 per cent stake in the new vehicle, Mondex Asia, and Hongkong Bank the remaining 49 per cent. Hongkong Bank will transfer its Mondex franchise in Asia into the joint venture.
MasterCard president for Asia-Pacific James Cassin declined to disclose the details of the deal but said a similar formula would be used in other regions where Mondex International did not own the franchise.
Hongkong Bank, one of the 17 Mondex founder banks, owned the Mondex franchise in Asia before MasterCard acquired a 51 per cent stake in London-based Mondex International in November last year.
A number of Australian banks own the Mondex franchise in that country.
Mr Cassin said MasterCard would try to form joint ventures with these Mondex franchise owners. However, the credit card association did not intend to hold majority stakes in all of these joint ventures.
