First Data Corporation Acquires ICICI Merchant Services For $73 Mn

ICICI Bank has sold its network of electronic point of sales (PoS) terminals to First Data Corporation for $73 Mn.

The bank has hived off its network of over 1.5 lakh electronic swipe machines to a separate company — ICICI Merchant Services. First Data Corporation bought 81% stake in ICICI Merchant Services, valuing it at $90 Mn.

ICICI Merchant Services will earn a fee every time a credit or debit card transaction is processed through the point of sale network. ICICI Bank expects that the specialised company will bring down transactions costs and also grow the payment network more efficiently.

Established in 1969, First Data Corporation is payment processing comapny based in Georgia. It provides a broad range of payment solutions including ATM and PoS management, fraud protection and authentication solutions. PE major - Kohlberg Kravis & Roberts is the majority sharholder in First Data Corporation.

YES Bank also has tie-up with First Data Corporation for ATMs, where the bank pays FDC transaction based charges. SBI has outsourced ATMs to Tat Communication and TCS, while Bank of India, United Bank and Dena Bank has outsourced this services to Fidelity National Information Services.

Recently, Chennai based Prizm Payments acquired thePos Platform of Reliance Money in an all cash deal.It is planning to roll out ATMs and PoS networks across the country mostly on a transaction fee model, which will help banks and financial institutions avoid capital expenditure.