Worldpay in $43bn takeover by US fintech giant FIS as electronic payments business booms

British firm had been part of RBS but was offloaded as part of taxpayer-funded bailout of the bank

Worldpay is a major player in card payments, particularly in the UK (Reuters)

UK technology business Worldpay, which used to be part of taxpayer-owned Royal Bank of Scotland, has been sold to a US rival for $43bn (£35bn).

The British firm, which provides the tech behind billions of online transactions, was bought by Fidelity National Information Services (FIS), they announced on Monday.

Previously owned by NatWest, Worldpay became part of RBS and was then offloaded in 2010 as part of the terms of the bank's government bailout during the financial crisis. The company has grown rapidly as internet shopping has increased in popularity.

Worldpay is a major player in card payments, particularly in the UK, while FIS focuses on banking clients and payments.

Worldpay makes money by charging commissions on transactions. It also advises customers on how to lower costs to credit issuers, card networks and other intermediaries as well as by settling these transactions in a currency of their choice.

The deal is the largest yet in the fast-growing financial technology (fintech) sector. It comes as part of a wave of consolidation as firms seek to bolster the payment systems that are increasingly used for online and high street sales.

“Scale matters in our rapidly changing industry,” said FIS chief executive Gary Norcross, who will lead the combined company.

"The need to invest, to continue to modernise both the technology and application layers, and continue to innovate so our customers can continue to be disrupters, will be important for us," Mr Norcross told investors.

As people switch from cash to digital payments, the sector is expected to generate $3 trillion in revenue for companies such as Worldpay by 2023, according to consulting firm McKinsey.

The new company will become a giant among fintech firms with revenues of $12bn and earnings of over $5bn.