Global Payments (GPN) is rolling out the OptBlue program for American Express Card acceptance in Canada this week. OptBlue offers small business merchants a single source for payment processing, pricing, underwriting, risk management, settlement, reporting, support and a consolidated statement.
TSYS joins the growing list of acquirers to offer enablement of full service payment processing under American Express OptBlue, the small merchant acquiring program from American Express.
Agent member credit card programs gained steam again last year and are poised for a good 2015. However, 60% of those in the agent programs last year achieved a medium performance level, offering some sales training and average rewards, but lackluster results.
First Data has received commitments to purchase approximately $3.5 billion of its common equity in a private placement to strengthen the company’s balance sheet through repaying portions of its debt. The $3.5 billion comprising the private placement announced today includes $1.5 billion from existing investors and $2.0 billion from new investors, including a diverse group of pension funds, mutual funds, asset managers and wealthy individuals. KKR provided approximately $1.2 billion, including $500 million from its 2006 Fund and $700 million from its balance sheet. Upon close of the transaction, KKR’s balance sheet will have approximately $1.0 billion invested in First Data’s equity, through general partner and limited partner interests.
ROAM, an Ingenico company and the leading mobile commerce platform provider, will provide a mPOS solution for the non-profit Direct Selling Education Foundation’s (DSEF) fundraising effort during the upcoming DSA 2014 Annual Meeting, taking place June 1-3, 2014 at the Hyatt Regency Orlando in Orlando, Florida. ROAM’s participation in the event is the latest example of the company’s growth within the non-profit fundraising segment. ROAM has partnered with key non-profit service providers such as Blackbaud, to help provide its clients with a secure, efficient way to accept card payments at events and through peer-to-peer solicitation. According to Blackbaud, non-profits are projected to double their investment in mobile technologies this year.
Fidelity National Information Services announced the pricing of its sale of $300 million in aggregate principal amount of 1.450% Senior Notes due 2017 and $700 million in aggregate principal amount of 3.875% Senior Notes due 2024 (together, the “Notes”). The Notes will be guaranteed by certain of FIS’ subsidiaries. FIS intends to use the net proceeds from this offering to repay the entire outstanding principal amount of and accrued interest on its revolving credit facility, to repay up to $550 million of the outstanding principal amount of its Term Loan A-4 and for general corporate purposes. Any remaining proceeds will be used, together with additional borrowings under FIS’ revolving credit facility, to fund the purchase, through a call for redemption intended to be effective on or about July 15, 2014, of the entire $500 million aggregate principal amount of its 7.875% senior notes due 2020.
American Express expanded its OptBlue merchant acquiring program that extends U.S. small merchant coverage. There are now 10 participating acquirers in OptBlue, five of which are among the top 10 in the United States. The program was announced at American Express’ Financial Community meeting earlier this year with Vantiv, Global Payments, Heartland Payment Systems, Worldpay, Transfirst and JetPay as the first participants. With OptBlue, participants have the flexibility to provide U.S. small merchants the benefit of a single statement, one settlement process, and one contact for all the major card brands. Participants determine merchant pricing in addition to providing payment processing and servicing. OptBlue will help expand American Express’ U.S. small merchant coverage, providing consumers more payment options at local businesses.
One of the best ways for card issuing credit unions and other financial institutions to augment their organic/branch card sales growth is to offer agent member card programs to other, usually smaller, financial institutions. The sponsoring organization provides the card expertise and management and all card member services (“3 C’s”) while the agent institution generates new applicant/card accounts. Agents are often selected and offered varying rewards based upon size, number of member households served, number of branches, geographic territory served, and card sales technology they have available at their branches, and thus resources for new card growth potential. The greater potential for growth, the greater fee income that is usually offered.
“In addition to rising card portfolio deal prices, the most interesting thing about card market now,” notes R.K. Hammer, “is that the rising deal flow has for the second year in a row cut favorably across all card segments: prime/super prime deals, subprime, private label, and prepaid card portfolios – all stand to benefit again…
Digital River global cloud commerce is set to acquire LML Payment Systems in an all cash transaction for $3.45 per share. Digital River has traditionally focused on online payment processing for enterprise and mid-sized merchants. LML Payment Systems processes online payments for more than 14,000 small to mid-sized merchants. The combination will enable Digital River to broaden its online payment services to businesses of all sizes. Collectively, the companies will handle more than $20 billion in online transactions for tens of thousands of companies across a broad range of industries, including software, consumer electronics, government, utilities, event registration and mobile payments.
EVERTEC and EVERTEC Finance have extended their pending exchange offer to exchange up to $40,000,000 aggregate principal amount of their 11% Senior Notes due 2018 that have been registered under the Securities Act of 1933 for a like principal amount of their outstanding 11% Senior Notes due 2018 which were issued on May 7, 2012. The Issuers have been advised by their exchange agent that, as of the close of business on August 27, 2012, approximately $39,300,000, or approximately 98%, of the Old Notes, have been confirmed as tendered in exchange for a like principal amount of the Exchange Notes.
EVERTEC reported consolidated results for the quarter ended March 31, 2012. “We are pleased to report continued strong consolidated Adjusted EBITDA growth and revenue increases across our business lines,” said Peter Harrington, EVERTEC’s President and Chief Executive Officer. “Our first quarter 2012 results demonstrate both the increased penetration of our products and services within new…