First Data Announces Agreement to Acquire PayPoint Electronic Payment Systems From BP
Addition of Processor Significantly Increases Both First Data's Market Presence and PIN-based Debit Offering in Petroleum, Supermarket and Quick Service Restaurant Markets
biz.yahoo.com
DENVER and LOS ANGELES, July 19 /PRNewswire-FirstCall/ -- First Data Corp. (NYSE: FDC), a leader in electronic commerce and payment services, today announced an agreement to acquire PayPoint Electronic Payment Systems from BP p.l.c. PayPoint is one of the largest processors of personal identification number (PIN)-based debit transactions and a leading national electronic payment processor.
Financial terms of the transaction were not disclosed. The closing is subject to regulatory approval and other closing conditions. The acquisition is expected to close this quarter.
Upon completion of the transaction, First Data will significantly expand its growing presence in the petroleum/convenience store, supermarket and quick service restaurant (QSR) markets. First Data will gain a robust platform, significant scale, and additional expertise to serve merchants in these growing markets and the debit environment.
With the addition of PayPoint's EBT (electronic benefits transfer) acquiring capabilities, First Data will be able to offer direct EBT connections to any merchants anywhere nationwide. In addition to debit and EBT leadership, PayPoint offers a full suite of electronic payment options that can be integrated and leveraged with First Data's full set of payment processing services and management tools.
"The sale to First Data is very exciting, providing PayPoint significantly more opportunities to expand its business," said Mark Blincoe, president of PayPoint. "I am also pleased that our association with BP will continue with our recently announced agreement to be their long-term point-of-sale payment processor for their nationwide network of 15,000 retail gasoline stations and convenience stores."
PayPoint also has existing contracts with such well-known merchants as Albertson's, Costco, Trader Joe's and McDonald's. Created in 1984 to help ARCO launch PIN-based card payments at the gasoline island, PayPoint added non-petroleum clients in the 1990s while continuing to process payments for parent ARCO, which BP acquired in 2000. Earlier this year, BP agreed to switch its debit and credit processing transactions to PayPoint for its various retail sites throughout the U.S. That switch is expected to take place in early 2003.
"This transaction underscores a strong and strategic commitment First Data has made to meeting the future payment needs of merchants in growth segments such as petroleum, supermarket and QSR," said Scott Betts, president of First Data Merchant Services. "Our first priority is to ensure new benefits and continued quality service for PayPoint clients, and to complete the BP implementation.
"Both First Data and PayPoint clients will benefit from the combined strength of First Data and PayPoint. It will enable us to deliver market- specific payment-processing solutions to more merchants. That includes capitalizing on First Data's ongoing success in penetrating the PIN-based debit market," Betts added. |
