First Data Company Profile and Financial Overview

First Data is a leading global payment technology solutions company. It was founded in 1971.

The company's headquarters is located in Atlanta, Georgia, USA. First Data has a global presence with operations in over 40 countries.

First Data provides a range of payment and commerce solutions to businesses of all sizes, from small retailers to large corporations. Its services include credit and debit card processing, mobile payments, and online payment gateways.

First Data's financial performance is a key aspect of its business. The company has a long history of innovation and growth, with significant revenue and profitability milestones achieved over the years.

First Data has a rich history that spans over five decades. It all began in 1969 with the formation of the Mid-America Bankcard Association in Omaha, Nebraska.

The non-profit bankcard processing cooperative paved the way for the creation of First Data Resources in 1971. Founded by Perry "Bill" Esping, Mike Liddy, and Jack Weekly, the company started by providing processing services to the Mid-America Bankcard Association.

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In 1976, First Data became the first processor of Visa and MasterCard bank-issued credit cards. This milestone marked a significant turning point in the company's history, setting the stage for future growth and innovation.

First Data's journey continued with the acquisition of 80% of the company by American Express Information Services Corporation in 1980. The remaining 20% was gradually purchased by American Express over the next few years.

First Data Corporation was officially incorporated on April 7, 1989. This marked a major step forward for the company, solidifying its position as a major player in the financial industry.

The company's expansion continued with the purchase of Signet Ltd, the operator of the Access in the United Kingdom, from NatWest, Midland Bank, Lloyds Bank, and Royal Bank of Scotland in July 1991.

First Data Corporation went public in 1992, following a successful spin-off from American Express. This move enabled the company to raise capital and further accelerate its growth.

In 1995, First Data merged with First Financial Management Corp. (FFMC), resulting in the creation of three major business units serving card issuers, merchants, and consumers. Western Union became part of the First Data family as a result of this merger.

In early 2014, First Data's STAR ATM Network adopted the Visa and MasterCard common application IDs for EMV-compliant debit transactions.

In April 2013, Frank Bisignano was named Chief Executive Officer of First Data, a position he held until March 2014 when he assumed the role of Chairman.

Bisignano launched an equity ownership plan for all 24,000 of First Data's owner-associates upon taking office.

He promoted notable additions to the company's staff, including Sanjiv Das, Himanshu Patel, Guy Chiarello, Cindy Armine-Klein, Andrew Gelb, Adam Rosman, Carmen Menendez-Puerto, Joseph Plumeri, Christopher Augustin, and Michael Manos.

In June 2014, First Data introduced Insightics, a cloud-based software that enables small and medium-sized businesses to monitor key business metrics.

First Data expanded its presence in Brazil with Bin, the company's acquiring solution developed specifically for the local market, in August 2014.

In September 2014, First Data announced it would provide encryption technology for Apple Pay, allowing payment with a single touch.

The company became a token service provider, supporting safe POS transactions in Apple Pay, with its integration into First Data's STAR Network.

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First Data announced the Enhanced TransArmor Solution for small businesses in October 2014, protecting payment card data throughout the transaction process.

In late 2014, First Data announced its collaboration with Capgemini to develop new solutions based on First Data's AccessPLUS and VisionPLUS products.

The company also announced its partnership with Verifone, providing merchants with a security option when using integrated point-of-sale systems.

In 2015, Samsung announced its Samsung Pay mobile system in conjunction with First Data, using NFC to make payments at POS systems that accept First Data's technology.

First Data reported its first profitable quarter in 29 quarters since its 2007 privatization in February 2015.

The company acquired Transaction Wireless, a provider of gift card solutions, in July 2015, and Spree Commerce, an open source e-commerce platform, in September that year.

First Data planned to seek a minimum of $2.5 billion in the biggest U.S. IPO of 2015, raising $2.56 billion after selling 160 million shares for $16 apiece in October 2015.

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First Data expanded rapidly from 2001 to 2005, acquiring numerous companies around the globe and in the US. This period of expansion included the acquisition of PaySys International and their VisionPLUS Payment Software System in 2001.

First Data's growth continued with a $6.6 billion merger with Concord EFS, Inc. in 2004, which added the STAR Network and PIN-based debit acceptance at over 1.9 million ATM and retail locations. The company also acquired GovOne, eONEGlobal, Paymap, Inc., and Taxware during this time.

In 2009, First Data acquired ICICI Bank's merchant services business for 4 billion Indian rupees (US$80 million), expanding its presence in the Indian market.

First Data expanded its reach through strategic acquisitions, including the $6.6 billion merger with Concord EFS, Inc. in 2004, which added the STAR Network and PIN-based debit acceptance at over 1.9 million ATM and retail locations.

This expansion was a significant milestone for the company, allowing it to tap into new markets and increase its customer base.

In 2001, First Data acquired PaySys International and their VisionPLUS Payment Software System, marking the beginning of its expansion efforts.

First Data's growth continued with the acquisition of GovOne, eONEGlobal, Paymap, Inc., and Taxware, although it eventually divested or absorbed these businesses.

The company also entered into strategic relationships to further its expansion plans.

First Data's acquisition of Clover, a POS startup, in 2013, was a notable move in its expansion efforts, giving it a foothold in the mobile payments market.

In 2009, First Data partnered with ICICI Bank to acquire its merchant services business, expanding its presence in India.

This partnership allowed First Data to offer 3D Secure merchant services and MOTO Machine to merchants and stores, enabling them to process payments by credit card.

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It's difficult to gauge what First Data succeeds and fails at because they offer little to no information on their website regarding our ranking criteria.

Looking into top industry competitors is a good idea before considering First Data.

Fiserv has announced it will acquire First Data in an all-stock transaction valued at $22 billion.

The deal was scheduled to be finalized in the second half of 2019, and Fiserv completed the acquisition of First Data on July 29, 2019.

Fiserv is currently one of the largest technology providers for banks according to revenue.

Fiserv chose to pursue First Data due to its relatively low valuation compared to its rival payment processors.

At the time of the acquisition, First Data was trading at a price-to-earnings ratio of 14.83 times, far less than Global Payments Inc. (at 56.25) or Euronet Worldwide Inc. (at 30).

First Data holds a dominant position in the U.S. payments market, but the company has struggled due to its large debt burden following a KKR-led $29 billion leveraged buyout in 2007.

Fiserv has already secured debt in order to refinance the $17 billion in obligations that First Data currently holds, and the financial technology provider aims at reducing First Data's leverage to historical levels within two years.

The acquisition represents a premium of almost 30 percent over First Data's closing price the day before the deal was announced, with Fiserv offering $22.74 per share.

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First Data is a leading provider of commerce-enabling technology solutions, processing over 2,800 billion transactions annually.

The company's financial performance has been strong, with net revenue increasing from $4.5 billion in 2015 to $6.7 billion in 2018.

First Data's growth has been fueled by its strategic acquisitions, including its purchase of Clover in 2012 for $900 million.

In 2016, First Data and Alipay partnered to bring Alipay's mobile payment processing to the United States.

First Data and Alipay's partnership marked a significant step in the adoption of mobile payments in the US.

First Data announced the launch of their Integrated Solutions Group (ISG) in 2017, with Edward Jackson leading the new business segment.

ISG aimed to provide integrated payment solutions to businesses.

In March 2017, First Data acquired Acculynk, an ecommerce technology company focused on debit payments.

Acculynk's expertise in debit payments expanded First Data's offerings.

First Data launched Global PFAC in May 2017, providing payment facilitators with a single integration interface.

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This move streamlined payment processing for businesses.

On May 29, 2017, First Data announced plans to acquire CardConnect for $750 million, a significant move in the payment processing industry.

CardConnect processed approximately $26 billion of volume annually.

First Data launched Fraud Detect in June 2017, using AI and machine learning to identify potentially fraudulent transactions.

Fraud Detect utilized a combination of cybersecurity intelligence and information from the Dark Web to detect threats.

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First Data offers a range of services to financial institutions, including account screening and collection services, card production solutions, and consumer lending.

Their electronic processing capabilities allow for faster, safer, and easier transactions. This is made possible by their TransArmor Security Solutions.

They also provide customer communication options, debit processing, ATM, and STAR Network services. This one-stop-shop approach is convenient for business owners who want to keep everything in one place.

Their system includes information, analytics, and reporting, which can be used to inform business decisions. Marketing and prepaid options are also available.

Merchant acquiring referral programs, mobile commerce solutions, and online banking options are just a few more services they offer. Security and fraud protection are also key components of their system.

Vision payment solutions are another feature of their services, which can help businesses streamline their payments.

First Data offers a wide range of payment solutions that make it easy for businesses to process transactions. Their system includes account screening and collection services, card production solutions, consumer lending, credit processing, and commercial payment solutions.

Their payment solutions also include customer communication options, debit processing, ATM and STAR Network, and information, analytics, and reporting. They even offer mobile commerce solutions, online banking options, and security and fraud protection.

First Data has partnered with Alipay to bring mobile payment processing to the United States, and they've also implemented point-of-sale technology that allows businesses to accept mobile payments. They've also launched Fraud Detect, which uses artificial intelligence and machine learning to identify potentially fraudulent transactions.

In terms of patents, First Data has filed 419 patents, with the most popular topics being payment systems, mobile payments, and credit cards. One of their patents is for "Instant digital issuance", which allows for the instant digital issuance of payment cards.

Here are some of the payment-related services offered by First Data:

First Data is a leading provider of commerce-enabling technology solutions.

Founded in 1989, First Data has a rich history of innovation and growth, with a presence in over 100 countries worldwide.

First Data processes over 3,000 transactions per second, making it one of the largest payment processors in the world.

The company has a diverse range of clients, from small businesses to large enterprises, including Fortune 500 companies.

First Data's solutions are designed to help businesses accept and process payments, manage their finances, and improve customer engagement.

First Data's technology platform is built on a cloud-based architecture, providing scalability, flexibility, and reliability for its clients.

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