News

PAI to shed merchant services, sharpen focus on ATM processing

January 19, 2017

Independent ATM operator Payment Alliance International and payment processor Clearent have entered into a definitive agreement under which Clearant will acquire the PAI merchant services division.

The PAI merchant services provide processing solutions for businesses, independent sales organizations, agents and associations. The division serves more than 17,000 merchants in the U.S., according to a press release.

In acquiring the service, Clearant will gain a complementary telesales channel, strategic association partnerships, and $4.2 billion in processing volume, the company said.

With the acquisition, Clearant will add offices in Louisville, Kentucky, to a list that currently includes a division in West Palm Beach, Florida, and a home office in St. Louis.

The combined entity will boast more than 45,000 merchants and $14 billion in processing volume. Upon closing of the transaction, Clearent will begin servicing PAI merchants and other business relationships.

PAI CEO John Leehy said Clearent will be "an outstanding home" for customers and employees associated with the bankcard business — and the sale will allow PAI to turn its full attention to the ATM side.

"The growth and success of our industry-leading ATM processing business demands our clear focus and full attention," Leehy said in the release. "The divestiture of our merchant acquiring business brings further clarity to our strategy and strengthens our capacity for future growth."