Paymentech, Chase Merchant Services form joint processing entity
Paymentech and Chase Merchant Services have formed a joint merchant processing operation, Chase Paymentech Solutions LLC. The company is jointly owned by JPMorgan Chase & Co. (51%) and First Data Corp. (49%), which previously owned part of Chase Merchant Services and Paymentech.
The company entity is expected to process about 13.1 billion transactions annually with more than $500 billion in annual bank card volume in the U.S. and Canada. It has a merchant base of more than 541,000 merchants, including online retailers.
Paymentech CEO Michael P. Duffy heads the new venture, which becomes the largest financial transaction processor in North America. The new company is headquartered in Dallas, the site of Paymentech’s headquarters, and employs Paymentech’s 1,700 employees and Chase Merchant Services’ 325 employees.
“We are pleased that we are moving forward with a solid business plan and that JPMorgan Chase and First Data have such confidence in Paymentech’s proven business model,” Duffy said.
Although there are no major organizational changes planned for the near term, the company will be looking for redundancies within the two companies, a spokeswoman says.
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