Digital Transactions Authoritative, insightful and timely information for payments professionals
Processor First Data Corp. and Fleetcor Technologies Inc. are forming a joint venture to consolidate their gift card businesses, First Data announced Monday.
The joint venture, whose name was not released, combines First Data’s gift card business, digital gift-card provider Transaction Wireless Inc., and its Gyft unit, with Fleetcor’s Stored Value Services prepaid card business and its gift-card management assets.
The combined revenue of the gift card businesses of the two companies was $362 million in 2016, says First Data, which will own 57.5% of the new enterprise. Fleetcor will own 42.5%. Both First Data and Fleetcor are based in Atlanta.
First Data executives were not available for comment on the deal, but in a press release Frank Bisignano, First Data chairman and chief executive, said, the “joint venture will focus on expanding gift card distribution solutions and bringing new value to clients in a competitive and rapidly growing marketplace.”
In addition to working with issuers to manage their prepaid programs, the enterprise will focus on customer acquisition and retention, distribution, fraud prevention, and payment acceptance costs, First Data says.
