US fintech company Fiserv has agreed to acquire third-party debit processing solutions of US Bancorp’s Elan Financial Services unit for about $690m.
The third-party debit processing solutions included in the sale are debit card processing, ATM Managed Services and MoneyPass surcharge free network of the US Bancorp unit.
For Fiserv, the transaction is expected to further improve its value proposition and deepen its footprint in debit card processing. The addition of the debit processing solutions from Elan Financial Services will also help expand its mobile and digital payments solutions for consumers and businesses, said the fintech company.
Fiserv, through the deal, will consolidate on the growth of its Card Services business by broadening its suite of solutions in ATM Managed Services and other key areas.
On the other hand, MoneyPass, which is considered to be among the largest surcharge-free networks with access to over 33,000 ATMs throughout the US, will further improve the market position of the US fintech company.
The transaction will not involve the credit card issuing and corporate payments businesses of Elan Financial Services.
Fiserv president and CEO Jeffery Yabuki said: “We continue to see opportunities for financial institutions to enhance the card-based payments they provide to their customers in an always-on, anytime access world.
“This acquisition expands our capabilities and provides additional expertise, which together should enhance the value we provide our clients. We look forward to welcoming the Elan team to Fiserv.”
US Bancorp, which is the parent company of US Bank, said that it decided to sell the third-party debit processing solutions following a strategic review.
US Bank consumer banking sales and support vice chairman Tim Welsh said: “We believe this sale is the right thing to do for the bank and our customers.
“Our customers will benefit from the commitment that Fiserv has for this business, and U.S. Bank will benefit as we continue to reinvest in our core businesses.”
US Bancorp said that the sale of the third-party debit processing solutions is anticipated to be completed in the fourth quarter and would be based on satisfying customary closing conditions, including US antitrust approval.
Last month, Fiserv rolled out two improved consumer authentication solutions, step-up authentication and identity verification, with an objective to mitigate card fraud within call centers.