US Bank, the commercial arm of US Bancorp, has signed an agreement to purchase Florida based prepaid card processing company FSV Payment Systems, which serves companies, governments and other financial institutions.
The deal will enable the US lender to boost its payments capabilities and prepaid expertise with the integration of FSV’s platform.
Following closure of the deal, which is expected in December after receiving regulatory approval, FSV will trade under US Bank’s Elan Financial Services brand.
US Bank retail payment solutions executive vice president Tony Vuoto said, "FSV Payment Systems is one of the few integrated platforms developed specifically for the prepaid market and has the flexibility to serve our growing customer base."
After completion of the transaction, FSV clients will continue to get hassle free services and also benefit from the new developments delivered by the integrated business in future, the purchaser said.
Established in 1999, FSV both manages and processes its own programs in the prepaid card market and also offers business-to-business and direct-to-consumer services.
As of 30 September 2012, US Bancorp had $352bn in assets and manages 3,086 banking offices in 25 states and 5,080 ATMs and delivers banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions.