First Data, EUFISERV Partner for European Processing Expansion

EUFISERV, which is based in Brussels, provides inter-bank switching of Point of Sale (POS) and Automated Teller Machine (ATM) transactions, including authorisation, clearing, settlement and value-added services to payment card issuers, acquirers and payment schemes. EUFISERV together with First Data will further develop these services which will be compliant with the Single Euro Payment Area (SEPA) framework requirements.

The company will also be well positioned to service a new class of "Payment Institutions" created by the European Commission's Payment Services Directive (PSD). Connecting the existing networks of EUFISERV and First Data will create the opportunity for customers to access more than 74,000 ATMs, 1.5 million POS merchants and to reach more than 165 million debit and credit card accounts in Europe.

First Data is a leading payments processor, with a strong presence in Europe and operations around the globe. Prior to First Data's investment, EUFISERV was owned mainly by retail banks and banking organizations from twelve European countries and by the European Savings Banks Group. EUFISERV will provide support for ATM and POS transactions from multiple payment schemes, delivered through a single connection to create efficiencies for users. The reach of the network, which is expected to grow rapidly, will give a major boost to the creation of SEPA initiatives by making inter-operability possible between previously closed markets and increasing the choice of interbank providers.

EUFISERV formerly operated an ATM card scheme that provides cardholders from member banks with access to cash at more than 60,000 ATMs in nine European countries. In line with SEPA requirements, the EUFISERV card scheme has already been spun off into a separate company, EUFISERV Payments SCRL. Upon closing of the transaction, First Data will acquire a 50 percent equity stake in EUFISERV's interbank processing business, which will be renamed to reflect the new joint ownership structure.

David Yates, president of First Data's international operations, commented: "First Data has been very active as a processor for both issuers and acquirers of a wide variety of card and consumer finance products. The European payments market is changing rapidly and, with SEPA, we are now seeing a redefinition of national and international transactions as European domestic transactions. This provides us with the opportunity to switch transactions, on an integrated basis, between our clients and other issuers or acquirers, to the benefit of all parties."

First Data's investment is actively supported by shareholders from the retail banking sector in twelve European markets and will assist EUFISERV in meeting the challenges of this changing environment. EUFISERV and First Data share the view that banks are looking for new options and they fully expect the services they can provide together to prove attractive and relevant in this new environment. As part of the transaction EUFISERV's products and services will be promoted through the First Data sales-force across Europe.

Chris De Noose, Managing Director of the European Savings Bank Group and also Chairman of the Board of Directors for EUFISERV added: "EUFISERV has deep knowledge of interbank processing which is complemented by First Data's extensive European footprint and great payments processing history. A strategic partnership between our two organizations positions us to grow our business strongly in the new market conditions created by SEPA."

Ernst Verbeek, currently Vice President, Interbank Processing Services at First Data, and Petter N. Johansen, currently Managing Director at EUFISERV, will be appointed by the shareholders, as Managing Director and Chairman respectively. A new Board of EUFISERV will be made up of the Chairman, the Managing Director and representatives from the original EUFISERV shareholders and First Data.

Completion of the transaction is conditional upon satisfaction of customary closing conditions, which is expected within the next few weeks.

About EUFISERV

EUFISERV offers the issuers of 118m cards access to cash at more than 60,000 ATMs in nine European markets. EUFISERV provides processing services to its users for switching POS and ATM card payment transactions on EUFISERV and all other payment card brands. EUFISERV is a Brussels-based company owned by retail banks from nine European countries and by the European Savings Banks Group. Its mission is to develop, maintain and operate international payment services for the financial industry. More on http://www.EUFISERV.com