Magazine article American Banker

Change at the Top for U.S. Bancorp's Processing Division

Magazine article American Banker

Change at the Top for U.S. Bancorp's Processing Division

Article excerpt

The chairman and chief executive officer of U.S. Bancorp's merchant processing division has left, and Pamela A. Joseph, its president and chief operating officer, has succeeded him.

Edward Grzedzinski, who co-founded Nova Information Systems Inc. in 1991, left "to pursue other interests," U.S. Bancorp said in a press release Wednesday.

Mr. Grzedzinski could not be reached for comment, but industry analysts speculate that he may have grown frustrated in the position, because merchant processing has become largely a commodity business and has limited growth potential in the United States.

With a credit card market share of 8% to 10%, Nova, of Atlanta, is the country's third-largest merchant processor, behind First Data Corp. of Denver and National Processing Co. in Louisville.

In one of his last major initiatives, this past spring Mr. Grzedzinski vastly expanded Nova's operations in Europe, a market less saturated than the United States. Nova, which had owned a 50% stake in euroConex Technologies Ltd. of Dublin since 1999, acquired the remaining 50% in April from Bank of Ireland.

Around that time euroConex signed a marketing agreement with Bank Zachodni WBK, which now refers merchant customers of its 400 Polish branches to euroConex for processing.

Low volume growth in the United States is one reason companies such as Nova and First Data have increasingly "chased" transaction volume in Europe, said Robert Misasi, the president and CEO of Mercator Advisory Group Inc. …

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