News
JPMorgan Chase, First Data end joint venture
May 28, 2008
NEW YORK — JPMorgan Chase and First Data have announced an agreement to end their joint venture, Chase Paymentech Solutions, a global payments and merchant acquiring entity, by the end of 2008, according to a news release. In the interim, the two companies will continue to operate their joint venture and provide service to their customers.
In reviewing the Chase Paymentech joint venture, both JPMorgan Chase and First Data concluded that the payments and merchant-acquiring businesses were core to their strategies and each owner's share of the venture should be operated independently by their respective companies.
After the transition, JPMorgan Chase and First Data will operate separate payment businesses.
JPMorgan Chase will provide global payment solutions for allocated merchants by retaining 51 percent of the joint venture's assets, including most of its employees and the JV's Canadian and European operations. The bank will name its payments and merchant acquiring business Chase Paymentech and retain the joint venture's Dallas headquarters.
First Data will continue to provide transaction processing and data commerce solutions for allocated merchants through its current technology platforms. First Data will assume management of the full-service ISO and Agent Bank unit of the joint venture and will integrate 49 percent of the joint venture's assets and a portion of the joint venture employees into its existing merchant acquiring business.
"With emerging opportunities in the global payments business, it makes good sense to bring our stake in Chase Paymentech business fully in-house," said Gordon Smith, chief executive of JPMorgan Chase's Card Services group. "Merchants are moving beyond traditional payment vehicles and we expect to be at the forefront of the industry, developing and investing in new forms of payments and related transactions that bring value to merchants. We appreciate our successful partnership with First Data Corp. and look forward to working with the company on other areas of joint interest in the future."
"Throughout this transition, we are committed to ensuring that there is no disruption to our allocated merchant partners. First Data will continue to focus on our core business of providing data-driven solutions and insight for our customers while delivering market-leading services and technologies that advance global commerce, " said Brian Mooney, president of First Data's Merchant Services group. "In addition, we remain committed to the bank alliance model and value the successful relationships we have with our financial institution partners. We look forward to working with JPMorgan Chase in other areas of business."
Retail / Off-PremisesDebit / CreditNorth AmericaTransaction ProcessingBank SecurityBank / Credit UnionBranch Transformation
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