June 18, 2010 / 9:34 PM / 7 years ago

UPDATE 1-CIBC not to renew agreement with Global Payments

* Agreement with CIBC ends March 2011

*Global Payments says applied to form loan co in Canada

June 18 (Reuters) - Global Payments Inc (GPN.N) said it was notified by Canadian Imperial Bank of Commerce (CM.TO), that it would not renew the Visa sponsorship agreement with the company, at the end of its 10-year term in March 2011.

    Global Payments, which processes online credit card transactions, currently has a marketing alliance with CIBC, Canada’s No. 5 bank, to offer Visa credit and debit card payment products and services to merchants in Canada.

    In a regulatory filing, Global Payments said it has filed an application with Canadian regulatory authorities to start a loan company in Canada, for directly processing Visa transactions in Canada from March 2011.

    A loan company would negate the need for a third party bank sponsorship relationship, Global Payments said in the filing.

    Global Payments’ shares closed at $42.61 Friday on the New York Stock Exchange.

    Reporting by Brenton Cordeiro in Bangalore; Editing by Prem Udayabhanu

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