First Data creates a joint business with FLEETCOR combining gift and prepaid card operations

7 March 2017

First DataAtlanta-based global payment technology solutions provider First Data is entering into the joint-venture with the Norcross provider of fuel cards and workforce payment products to corporate clients FLEETCOR Technologies. The joint-venture will combine gift offerings of both companies to help their clients enhance customer experience by providing added value through various gifting and incentive programs.

In the joint statement the companies explained that the new business will involve the current gift card operations of First Data (Transaction Wireless and Gyft) and prepaid card business and gift card program management assets of FLEETCOR (Stored Value Solutions).

According to Frank Bisignano, CEO and chairman of First Data, they are merging the two operations to provide better service and improved gift card offering to their clients, while the new venture will be focused on expanding gift card distribution schemes tapping the current trends for increasing the competitiveness in the environment of rapidly growing marketplace.

The joint venture will combine the revenue of both companies making up in total 362 million US dollars as of data for 2016. Share of First Data will account for 57.5%, and that of FLEETCOR will be 42.5% in the joint business.

The joint venture will be helping issuers improve management of their prepaid programs, while also supporting merchants and businesses to reach new customers, rewarding the loyal ones, providing digital access to merchant’s cards, and at the same time decreasing the fraud risks.

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