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DeltaCap acquires Massy credit card portfolio

Published:Friday | October 7, 2022 | 8:51 AM
Executive Chairman of Delta Capital,, Zachary Harding.
Executive Chairman of Delta Capital,, Zachary Harding.

Private equity firm Delta Capital Partners, or DeltaCap, has acquired 100 per cent of Massy Card Barbados’s credit card portfolio, adding a ninth asset to its portfolio.

The price of the acquisition was not disclosed.

DeltaCap also said Thursday that it was barred by contract from disclosing the value of the acquired portfolio.

Delta received regulatory approval for the deal last month, following which the announcement of the acquisition was made on October 5 at the Fintech Islands conference in Barbados.

Formed in 2020, Delta Capital is the parent company of Delta Financial Services, Delta Health and Wellness, Delta Real Estate, Delta Industrial, Delta USA, Delta Hospitality, Delta Fintech and Delta Media and Entertainment.

The credit card portfolio of the Barbados-based company was purchased through Delta Payments Services Barbados Limited, a subsidiary of Delta Financial Services, and was said to be DeltaCap’s most expensive acquisition to date.

Massy Card Barbados, a member of the Massy Holdings group, will to continue operating its remittance business, DeltaCap said Thursday, affirming that the acquisition deal related only to the credit card portfolio.

Since its formation in 2020, DeltaCap has acquired minority interest in CaribShopper, Senit, Link 2 Lenders, Qanik, P2 Controls, Piarco Air Services and Irie Jam at prices ranging between US$500,000 and US$3 million. Delta Payments Services, a Jamaican-based fintech payments platform, is currently the sole business in which Delta Capital has full ownership.

Massy, a 99-year-old company, has issued some 30,000 credit cards and loyalty cards to consumers throughout the Eastern Caribbean for the purchase of products and services. The acquisition of the credit card portfolio is expected to push DeltaCap’s assets from US$75 million to roughly US$300 million.

Earlier this year, DeltaCap co-founder Zachary Harding told the Financial Gleaner that the company had raised US$12.5 million to fund its acquisitions.

Harding, who is DeltaCap’s executive chairman, is now in talks with card payments platform Mastercard to issue credit cards.

Over time, the cards are expected to rebranded as DeltaPaay, and will allow for cardholders to be able to access global financial services, in addition to healthcare services via Delta’s telehealth platform, Delta Health and Wellness.

“For Caribbean finance, this is comparable to the shift from hand-delivered mail to email. DeltaPaay will enable a wider bracket of Caribbean people, including the unbanked, to take part in the modern, digital economy, including paying for goods and services online. Most importantly, our people will have access to pay for online healthcare services through Delta’s telemedicine platform, even if they do not have a bank account,” Harding said in a press release.

All current card operations and programmes, including loyalty programmes, will continue during the transition period from Massy to Delta Capital ownership.

DeltaCap is owned by Harding, Anthony Dunn, Allison Hemmings and Ivan Carter.

karena.bennett@gleanerjm.com

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CORRECTION: This story has been updated to remove Hugh Croskery's name as one of the owners of DeltaCap. He is a former shareholder.