Tata Communications Divests Payment Solutions Arm to Boost Core Business Focus

Tata Communications is selling its subsidiary, Tata Communications Payment Solutions (TCPSL), to Transaction Solutions International India (TSI India) for over Rs 330 crore. The deal will allow TSI to expand its financial service offerings and align Tata Communications to focus on its core business strengths.

Tata Communications has announced the sale of its entire stake in Tata Communications Payment Solutions (TCPSL) to Transaction Solutions International India (TSI India). The deal, valued at over Rs 330 crore, signifies a strategic move by Tata Communications to sharpen its focus on core business areas by offloading its non-core payment solutions division.

Following this acquisition, TSI India, a subsidiary of Australian firm Findi, expects to expand its financial service capabilities significantly. This would be achieved through the integration of TCPSL's widespread network of over 4,600 operational Indicash ATMs with TSI's existing infrastructure, broadening its reach and capacity to serve underbanked communities, especially in rural areas.

With regulatory approval pending, the transaction is slated to be finalized by the end of FY25. This move also aligns with TSI's growth strategy, offering a platform to further penetrate the financial services market in India, promising innovation and enhanced customer experience via its FindiPay brand.

(With inputs from agencies.)