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Concord
Wins Wal-Mart, has STARs in its Eyes Electronic
commerce provider Concord EFS, Inc., has been chosen as on-line debit
point-of-sale (POS) processing for Wal-Mart stores and SAM’s Clubs nationwide.
Concord, which is already a processor for payments made with electronic benefits
transfer (EBT) cards at Wal-Mart stores, will route a portion of Wal-Mart’s
on-line debit transactions to the appropriate networks for authorization. Edward
A. Labry III, Concord President, said, “With on-line debit and EBT among the
fastest-growing transactions in retailing, we see Wal-Mart’s decision as a
vote of confidence in Concord’s processing capacity, expertise, and
service.” Labry went on to add that Wal-Mart’s continued emphasis on
PIN-based debit payments will help build awareness of on-line debit. “Many
retailers such as Wal-Mart also offer a cash-back feature, which allows
customers to withdraw cash when they pay for their purchases with a secure
PIN-based debit card,” he said. “Wal-Mart’s leadership in this area will
continue to offer a real boost to on-line debit growth.” The
Wal-Mart announcement was followed by the Concord’s finalized acquisition of Star
Systems, Inc., the nation’s largest PIN-secured debit network. STAR, which
had revenue of approximately $183 million in 2000, will become part of
Concord’s Network Services, which includes ATM terminal driving, debit card
processing, gateway services, and participation in the MAC, Cash Station and
STAR debit networks. Concord’s
future plans include marketing the products in its Network Services group under
the STAR brand. Labry said, “Our focus in 2001 will be on launching this
best-of-breed product set across the membership, and we will be working on
developing new on-line products—such as secure debit payment on the
Internet—that financial institutions can offer under a single, national
brand.” Dan
Palmer, Concord’s chairman and CEO, says that the company expects to realize
synergies from the transaction in the coming years. “With the addition of
STAR, Concord’s Network Services doubles to approximately 6,500 financial
institution customers and 5 billion transactions annually, which creates
important opportunities for realizing cost-efficiencies, cross-selling products,
and achieving internal cost reductions across the business,” he said. The
transition to the STAR brand at existing MAC and Cash Station ATM and POS
locations will be completed during the next three years. Cardholders from each
network should be able to use their cards at more than 180,000 combined ATM
locations during the first quarter of the year. Concord
is a vertically-integrated electronic transaction processor. The company
provides transaction authorization, data capture, settlement and funds transfer
services to financial institutions and retailers. Concord’s primary activities
include Payment Services, providing credit, debit, check authorization, and
electronic benefits transfer (EBT) processing services to selected retail
segments. Concord’s activities also include Network Services, providing
gateway processing, ATM driving, on-line and signature-based debit card
processing, and network access to the financial services industry under the Cash
Station, MAC, and STAR brands. For more information visit www.concordefs.com. |
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© Copyright 2001 · The Green Sheet, Inc. |
