First Data (now Fiserv)

First Data (now Fiserv)
Name	First Data (now Fiserv)
Type	Subsidiary
Industry	Financial services
Fate	Acquired by Fiserv
Founded	1971
Founder	NCR Corporation spin-out
Headquarters	Atlanta, Georgia
Area served	Global
Products	Payment processing, point-of-sale, merchant services

First Data (now Fiserv) was a global payment processing company that provided merchant acquiring, card issuing, point-of-sale systems, and electronic commerce solutions. Founded as a spin-off from NCR Corporation in 1971, it grew through large-scale contracts with Visa, Mastercard, and major banks such as JPMorgan Chase, Bank of America, and Wells Fargo. The company became part of Fiserv in 2019 following a headline merger, integrating with assets from First Data Corporation and legacy platforms used by institutions including Citigroup, Goldman Sachs, and Morgan Stanley.

History

First Data traced roots to technology developed at NCR Corporation and expanded during the 1970s and 1980s alongside networks operated by Visa and Mastercard. In the 1990s it acquired firms to enter markets dominated by American Express and Discover Financial Services partners. During the 2000s it signed processing contracts with retail chains such as Walmart, Home Depot, and Costco Wholesale while competing with TSYS and Global Payments. The 2010s saw recapitalizations involving private equity firms including KKR, strategic moves against competitors like PayPal and Square (company), and eventual combination with Fiserv under leadership changes tied to figures with experience at Citigroup and GE Capital.

Products and Services

First Data offered merchant acquiring services for merchants including McDonald's, Starbucks, and Walgreens through terminals from vendors such as Ingenico and Verifone. Its product set included card issuing platforms used by banks like PNC Financial Services and US Bank Corporation, e-commerce gateways competing with Stripe and Adyen (company), and point-of-sale systems used by franchises including Subway (restaurant chain) and Domino's Pizza. It provided fraud mitigation and tokenization services that interfaced with standards from PCI Security Standards Council and worked with networks such as UnionPay, JCB, and Interac. Enterprise offerings included data analytics solutions compared to services from IBM and Oracle Corporation and integrated payroll and payroll card services used by companies like ADP and Paychex.

Mergers, Acquisitions, and Corporate Transactions

Throughout its history, the company completed notable transactions including acquisitions of payment processors and fintechs that expanded its reach into markets serviced by Worldpay and Elavon. It engaged in strategic deals with investors including Apollo Global Management and Silver Lake Partners in the context of industry consolidation alongside mergers such as Fiserv–First Data merger. Corporate finance activities involved underwriters like Goldman Sachs, Morgan Stanley, and Bank of America Merrill Lynch and were structured amid regulatory review by authorities including Federal Reserve System, European Central Bank, and competition agencies in United Kingdom and Australia.

Corporate Structure and Leadership

The company's board and executive team included leaders with experience at NCR Corporation, GE Capital, JPMorgan Chase, and American Express. Its management oversaw global operations across regions including North America, Latin America, Europe, Asia-Pacific, and Africa. Governance interacted with institutional investors such as BlackRock, Vanguard Group, and State Street Corporation and activist shareholders similar to those involved with firms like Elliott Management Corporation and Pershing Square Capital Management. Post-merger leadership aligned with Fiserv executives and corporate functions reported to parent-company committees modeled after multinational firms such as General Electric and Siemens.

Financial Performance

First Data reported revenues derived from merchant acquiring, interchange, and technology services, comparable to peers including Global Payments Inc. and Worldline. Its capital structure reflected significant leverage following a leveraged buyout by KKR and subsequent refinancing with lenders including Wells Fargo and Deutsche Bank. Financial results were reported to regulators including the Securities and Exchange Commission and analyzed by research analysts at firms such as Moody's, Standard & Poor's, Fitch Ratings, Morgan Stanley, and Goldman Sachs. Performance metrics such as transaction volumes and gross dollar volume were benchmarked against industry milestones set by PayPal Holdings, Inc. and exchange-driven volumes at NASDAQ-listed payments companies.

Regulatory and Legal Issues

The company operated in a regulated environment involving oversight from agencies such as the Federal Trade Commission, Consumer Financial Protection Bureau, and international competition authorities like the European Commission. It faced litigation and compliance matters related to privacy, data breaches, and interchange fees similar to cases involving Equifax, Target Corporation, and Home Depot (retailer). Antitrust review touched on consolidation trends seen in mergers such as Visa–VisaNet historical proceedings and sector inquiries by authorities in jurisdictions including Canada, Brazil, and India. Settlement negotiations and consent orders involved counsel from major law firms that represent corporate clients in matters comparable to disputes involving American Express Company and Discover Financial Services.

Category:Companies established in 1971 Category:Payment service providers