Barclays has struck a strategic partnership with Brookfield Asset Management as it works towards offloading its underperforming payments acceptance business over time. The deal marks a key step in the UK bank’s broader restructuring strategy, which aims to shed non-core assets and focus on higher-growth areas.
Facing tough competition from fast-rising players like Stripe, Adyen, and Dojo, Barclays’ payments unit has struggled to stay competitive. In December, the bank slashed the unit’s valuation by £300 million, making a full sale less attractive to potential investors.
Under the new agreement, Barclays will invest around £400 million into the business, mainly within the first three years, to improve performance and broaden its service offerings. Brookfield, meanwhile, will lend its operational expertise in exchange for a financial incentive tied to the business’s turnaround.
Crucially, the deal sets the stage for Brookfield to eventually acquire a controlling interest. Beginning in year three and extending through year seven, Brookfield can purchase a 70% stake at market value, assuming certain conditions are met. Upon final sale, its initial incentive converts into an extra 10% shareholding.
Matt Hammerstein, CEO of Barclays UK corporate bank, called the partnership a clear example of the bank’s transformation plan in action: “This move enables us to better serve clients while unlocking long-term value.”
Brookfield’s Ron Kalifa emphasized the importance of digital transformation in the payments industry, stating: “We’re excited to partner with Barclays to build a market-leading platform that supports the UK’s digital economy.”