Barclays to Partner with Brookfield in Major Payments Business Restructure


Barclays Payments Restructure
Barclays is reportedly close to striking a deal with Brookfield Asset Management, as it looks to sell a stake in its merchant payments division. The move is part of Barclays’ wider strategy to streamline its operations and invest in high-growth areas like payments.
An official announcement could come soon, although no final agreement has been confirmed, according to a Bloomberg report.
A spokesperson for Barclays commented:
“We are exploring a number of options for investment in our market-leading merchant acquiring business, including strategic partnerships.”
This potential deal marks a significant shift for the bank, which has recently divested several non-core assets, including its German consumer finance arm and a portfolio of Italian mortgages. Barclays’ decision to bring in a strategic partner reflects the increasing demand for innovation and investment within the payments sector.
Brookfield’s Growing Presence in Payments
Brookfield, known for its expertise in infrastructure and real assets, is no stranger to the payments space. In 2024, it acquired Middle Eastern processor Network International and has committed over $5 billion to technology-led payment businesses. It also brought on board Sir Ron Kalifa – the former Worldpay CEO and author of the UK Government’s fintech review – to lead its financial infrastructure strategy.
Brookfield had previously walked away from talks with Barclays in 2023 due to differing views on valuation and complications surrounding the acquisition of Takepayments, a key Barclays payments partner. However, discussions have since resumed under new terms.
A Long-Term Growth Strategy for Barclays Payments
Under the proposed partnership, Barclays and Brookfield will gradually transform the payment acceptance business into a standalone entity. The division processes billions in transactions each year for UK SMEs and large international corporations and is considered vital to the country’s economic infrastructure.
Barclays will retain a significant role, investing around £400 million into the business over the first three years. Brookfield, meanwhile, will bring operational expertise to modernise the platform and expand its services. It will also receive a performance-based incentive, linked to the business's evolution during this period.
Matt Hammerstein, CEO of Barclays UK Corporate Bank, said:
“Finding a partner to support us in transforming our payment acceptance business – in a way that helps us better serve our clients and unlock value – is a key step in our three-year plan to become a simpler, better, more balanced bank.”
Barclays clients can expect improved technology, broader product offerings and more integrated services as the partnership progresses.
What Happens Next?
Between years three and seven of the partnership, Brookfield may acquire up to 70% of the business, at a market valuation determined at that time. Should this happen, and Barclays fully recoups its investment, Brookfield would also gain an additional 10% stake, taking its total ownership to around 80%.
Barclays is expected to retain a 20% stake and continue operating under the 'Barclaycard Payments' brand. It will also remain the exclusive provider of payment acceptance services to Barclays customers for at least the next decade.
Sir Ron Kalifa, now vice chair at Brookfield, added:
“To meet the needs of modern businesses, payments must be digital-first and data-led. We’re excited to help shape the next chapter of Barclaycard Payments and support the growth of the UK’s digital economy.”
Industry Outlook
This deal is the first from Brookfield Financial Infrastructure Partners – a new division focused on investing in digital assets that underpin the global payments ecosystem. Previous investments include the carve-out of Magnati from First Abu Dhabi Bank, and the acquisition of Network International, a major merchant acquirer in the Middle East.
As the payments landscape continues to evolve, this partnership signals a broader trend: traditional banks are teaming up with infrastructure specialists to compete with fintechs and deliver the innovation today’s merchants expect.
How Merchant Advice Service Can Help
At Merchant Advice Service, we understand that change within a major payments provider like Barclays can leave business owners with questions, especially those currently relying on Barclaycard for card processing.
Whether you're concerned about service continuity, potential pricing changes, or simply want to explore whether you're still on the most competitive deal, we’re here to help.
- Free comparison of alternative merchant accounts
- Independent advice for SMEs and enterprise-level businesses
- Support for high-risk or hard-to-place sectors
- Insight into long-term impacts of provider partnerships and M&A activity
If you're unsure how these changes may affect your business or want to benchmark your current setup against the wider market, get in touch with our team. We’ll connect you with the right provider and help you navigate the evolving payments space with confidence.