Bank of America (BoA), a Charlotte, North Carolina-based multinational investment bank, as per recent reports this week, is mulling over terminating its large-scale joint payment processing venture with First Data, an Atlanta, Georgia-based financial services company. Instead, the Charlotte-based bank plans on developing its merchant payment capabilities, in-house.
Almost ten years ago from now, both Bank of America and First Data entered into a partnership agreement, setting up the joint venture. Under the terms of this joint venture set up, Bank of America was to manage the sales and customer service, whilst First Data was to handle all the transaction processing. As per reports, the Atlanta-based First Data is a majority owner in this joint venture with its total revenue accounting to 10-12% of the payments vendor’s overall revenue.
Also, reports are that BoA Merchant Services is the fourth-largest merchant acquirer in the US, “We securely process more than 16.6 billion transactions across 705,000 merchant locations,” claims BoA on its website.
BoA’s current partnership with First Data will expire next year, in Jun. 2020. Also, reports are that Fiserv is gearing up to acquire First Data – the $22 billion takeover deal was announced earlier this year.