The European Commission has approved AIB's deal to buy Irish fintech payments business Payzone for €100m from Carlyle Cardinal Ireland.

In April, AIB said it had formed a new joint venture with First Data Corporation to buy Payzone.

The new joint venture is 75% owned by AIB - which will give the taxpayer a stake as the bank is still 71% state owned - and 25% owned by FDC. 

Payzone provides specialised payment services in Ireland facilitating consumer payments by cash and card for every day needs.  

It services more than 300,000 registered consumers in over 7,000 retail outlets throughout Ireland and processes 125 million transactions a year.  

Under the terms of the deal, Payzone will continue to be led by its chief executive Jim Deignan and its chief financial officer Nigel Bell, who will remain as shareholders in the business. 

Its clients include Electric Ireland, Vodafone, 3, Virgin Media, Leap, Fastway, Eir and Eflow.

The Commission said it had concluded that the acquisition would raise no competition concerns.

It noted the "limited horizontal overlaps" between the parties' activities, and also noted the absence of anti-competitive effects resulting from the combination of the activities of AIB, FDC and Payzone.