NEW YORK - J. P. Morgan Chase & Co. and First Data Corp. have signed an agreement to integrate the companies' jointly owned Chase Merchant Services and Paymentech merchant businesses, according to a news release.
The joint venture will operate as Chase Paymentech Solutions LLC. Fifty-one percent of the venture will be owned by Chase, 49 percent by First Data. Chase Paymentech also has entered into a five-year processing relationship with First Data Merchant Services.
"Both companies are market leaders and their integration creates an excellent opportunity to provide merchants with the best array of products and services in the industry," said Bill Campbell, chairman of Chase Card Services.
Chase Paymentech is expected to process approximately 13.1 billion transactions annually with more than $500 billion in annual bankcard volume in both the United States and Canada, providing merchants with the products and processing capabilities of Paymentech, Chase Merchant Services and First Data.
Oversight of Chase Paymentech will be provided through a board on which the owners will be equally represented. Michael P. Duffy, Paymentech's president and chief executive, will lead the new venture.
"Today's agreement to integrate the merchant businesses builds upon a 25-year relationship between Chase and First Data, a relationship that has advanced the payment industry and delivered innovation and choice to merchants and consumers," said Charlie Fote, chairman and chief executive of First Data Corp.
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