The Green Sheet Online Edition
November 24, 2008 • Issue 08:11:02
Splitsville for First Data, JPMC
First Data Corp., the world's largest processor, and financial titan JPMorgan Chase & Co. amicably terminated their joint venture, Chase Paymentech Solutions LLC, the leading merchant acquirer worldwide. Both JPMC and First Data concluded merchant acquiring and payment processing are core to their business strategies and decided to operate their respective shares of the former joint venture independently.
First Data assumed 49 percent of Chase Paymentech's merchant portfolio, which includes its full-service ISO, First Data Merchant Services, and agent bank unit.
First Data also completed incorporating its proportionate share of the joint venture's assets and employees into its existing merchant acquiring business.
JPMC integrated its 51 percent share of the joint venture as part of its card services division, which will continue to operate under the name Chase Paymentech. The company retains its processing platform and services, which include approximately half of all global e-commerce and Internet transactions.
"We are enthusiastic about what the future holds for Chase Paymentech now that we are wholly owned by JPMorgan Chase," said Mike Duffy, President of Chase Paymentech. "The payments industry is very dynamic and is undergoing a significant evolution at the moment. This means we can continue to deliver the high-quality service our customers have come to expect, while expanding our range of global payments and data solutions."
For First Data, the end of the joint venture signals a new phase of product development and expansion. "First Data is investing in new technologies such as analytics, e-commerce, mobile payments, alternative payment platforms and a comprehensive suite of check and prepaid solutions," said Brian Mooney, President, First Data Merchant Services.
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