Magazine article American Banker

HSBC, First Data in Pact

Magazine article American Banker

HSBC, First Data in Pact

Article excerpt

First Data Corp.'s OmniPay platform is processing Internet transactions for merchant customers of HSBC Holdings PLC in Europe and may eventually do so in other places.

The Denver company, which began doing so Nov. 1, announced the three-year deal Wednesday.

HSBC has processed online merchant transactions, but not cross-border ones. The OmniPay relationship is for "companies that want to trade globally and want a bank that can follow them across markets as we do with our payments and cash management," said Mark Robinson, the managing director for HSBC's group cards division.

A First Data spokeswoman said the deal will let the merchants process international transactions and pay the same interchange fee they would pay for local ones.

Initially, "the emphasis is on e-commerce, Internet-type merchants," which are more likely to operate in multiple countries, said Pamela H. Patsley, the president of First Data International.

The deal will not affect the one that Global Payments Inc. struck in September to process transactions for HSBC in China, India, Taiwan, Hong Kong and Singapore, and other parts of Asia, according to Mr. Robinson.

"The global merchant really wants to see a single point of interaction, a single consistent system rolled out, which is what we're offering as part of our cash management proposition," he said. "The traditional acquiring in-country, dealing with national merchants, brick and mortar stuff is where we work with Global Payments."

However, it is quite possible that e-commerce transactions in Asia could be processed on the OmniPay platform, Mr. …

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