Greenwood Village-based First Data Corp. could eventually end up processing more than a billion electronic transactions a month generated through a new joint venture with Bank of America.
But the real payoff from the new Banc of America Merchant Services partnership might come in popularizing new payment methods such as cellphones and electronic wallets through Bank of America’s huge branch network.
“That is where this gets very powerful because obviously the bank and obviously First Data have been working on next-generation payment types and are investing in those, and this is an opportunity to bring those together and do it collaboratively,” said Tom Bell, chief executive of the newly formed company, in a conference call last week.
First Data will contribute about 140,000 merchant accounts, most of them left over from a defunct alliance with Chase, while Bank of America is putting in 240,000 merchant accounts.
First Data will own 48.5 percent of the Atlanta-based joint venture. Bank of America, based in Charlotte, N.C., will own 46.5 percent.
A third-party firm, Rockmount Investments LLC, will own the remainder.
Bell said the two companies had talked about a joint venture for the past year, rebutting suggestions that Bank of America’s need to raise capital was driving the deal.
Private equity firm Kohlberg Kravis Roberts & Co. acquired First Data in September 2007, taking it private.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
