News

NYCE expands into Canadian ATM, debit markets

September 21, 2003

MONTVALE, New Jersey - NYCE Corporation and Celero Solutions, a Canadian information technology company that serves 244 credit unions in western Canada, have formed Everlink Payment Services Inc.

According to a news release, the new Canadian-based corporation will provide Canadian financial institutions with ATM and point-of-sale transaction switching, ATM terminal driving and connections to other networks.

NYCE will own 51 percent of the newly formed corporation; Celero will own 49 percent. Data center operations will be located in Calgary, Alberta.

Canadian consumers are the most frequent users of POS debit in the world. According to Interac Association, Canada's national ATM and POS network, Canadians conduct an average of 63.5 POS debit transactions per year, compared to 34.7 transactions per year among American consumers.

"Everlink represents NYCE's first efforts to expand its geographic footprint outside of the United States, in an adjacent market where debit is already well established. Moreover, the Canadian market is ready for a new EFT service provider with knowledge of the financial institution community and a track record of processing excellence," said Dennis Lynch, NYCE's president and chief executive, in the release. "The formation of Everlink offers NYCE the opportunity for significant returns while mitigating many of the risks associated with new market entries."

The two companies announced that Everlink has signed its first major contract even though it has yet to formally commence operations. Credit Union Central of Canada (Canadian Central), the national trade association and central finance facility for credit unions in Canada, has signed an exclusive, five-year agreement for Everlink to provide EFT services for the Canadian national credit union system.