First Data Corporation

First Data Corporation
Name	First Data Corporation
Type	Public (formerly)
Industry	Financial services
Founded	1971 (as First Data Resources)
Fate	Merged into Fiserv in 2019
Headquarters	Atlanta, Georgia, United States
Area served	Global
Key people	Frank Bisignano, Ken Toterhi, Paul Garcia
Revenue	US$12.7 billion (2018)
Employees	~22,000 (2018)

First Data Corporation

First Data Corporation was a multinational financial services and payment technology company based in Atlanta, Georgia. It provided merchant acquiring, payment processing, card issuing, and point-of-sale solutions to retailers, financial institutions, and governments. The company operated globally and served leading brands and banks in markets across North America, Europe, Asia-Pacific, and Latin America.

History

First Data traces roots to the 1971 founding of First Data Resources and the 1969 formation of National Data Corporation, with corporate lineage intersecting companies such as American Express, Wells Fargo, Bank of America, Citigroup, and JPMorgan Chase through client and partner relationships. During the 1980s and 1990s the company expanded alongside the rise of card networks including Visa, Mastercard, and Discover Financial Services, acquiring processing contracts from regional banks and retailers such as Kroger and Walgreens. In the 2000s First Data became a prominent acquirer and processor amid consolidation involving firms like Global Payments and Worldpay. The company underwent a landmark leveraged buyout led by KKR in 2007 and subsequently navigated the 2008 financial crisis, restructuring relationships with investors including Goldman Sachs and Morgan Stanley. In 2019 First Data merged with Fiserv in a transaction that combined merchant services and financial technology platforms.

Business operations and services

First Data's core businesses included merchant acquiring, card processing, payment gateway services, and card-issuing support, serving clients ranging from small merchants to multinational retailers such as Walmart, Target Corporation, Home Depot, and hospitality chains linked to Marriott International and Hilton Worldwide. It provided services to financial institution clients including PNC Financial Services, SunTrust Banks (now part of Truist Financial), and community banks that participated in networks like STAR Network and Interac in Canada. The company offered omnichannel payment acceptance for e-commerce platforms associated with Amazon (company), integrated solutions for point-of-sale vendors like Verifone and Ingenico, and risk-management services tied to fraud-prevention consortia including EMVCo and PCI Security Standards Council.

Technology and products

First Data developed and operated proprietary transaction processing platforms, tokenization services, and point-of-sale software that interoperated with hardware from vendors such as Clover Network, PAX Technology, and BBPOS. Its flagship platforms supported authorization, settlement, chargeback management, and emerging features like mobile wallets interoperable with Apple Pay, Google Pay, and ecosystem partners such as Samsung Electronics. The company invested in data analytics and loyalty solutions used by brands tied to Starbucks Corporation-style programs and integrated with customer-relationship systems from Salesforce and Oracle Corporation. Cybersecurity and compliance offerings referenced standards from National Institute of Standards and Technology and industry frameworks promoted by Federal Reserve System stakeholders.

Mergers, acquisitions, and corporate restructuring

First Data's acquisitive strategy included purchases and integrations of companies connected to payments and merchant services, involving transactions with firms similar to CardConnect, Network Merchants, and regional processors across Europe, Latin America, and Asia-Pacific. The 2007 leveraged buyout by KKR led to debt restructuring exercises negotiated with global investment banks including Credit Suisse and Deutsche Bank; subsequent asset sales, spin-offs, and divestitures adjusted the company's portfolio amid competition from Adyen (company) and Stripe (company). The 2019 combination with Fiserv created one of the largest payment technology platforms, altering competitive dynamics with incumbents like PayPal, Square, Inc., and Global Payments.

Corporate governance and leadership

First Data's governance involved a board and executive team that included industry executives with experience at institutions such as Citigroup, Bank of America, and private equity firms like Apollo Global Management. Chief executives and senior officers—figures who have held leadership roles at companies like Visa and Mastercard Incorporated—guided strategy on merchant services, technology investment, and regulatory engagement with agencies including the Consumer Financial Protection Bureau (in contexts where financial policy intersected with payments). The company maintained committees for audit, compensation, and risk oversight aligned with shareholder constituencies including institutional investors like BlackRock and Vanguard Group.

Financial performance and market position

Before its merger with Fiserv, First Data reported annual revenues in the low tens of billions of dollars, with profitability metrics influenced by processing volumes tied to consumer spending patterns tracked by U.S. Bureau of Labor Statistics data and seasonal retail cycles anchored by events like Black Friday and Cyber Monday. Market position was driven by scale in merchant acquiring and issuer processing, measured against competitors such as Global Payments, Worldpay, and Fiserv itself. Capital structure and credit ratings were affected by legacy leveraged buyout debt, with ratings and syndicate lending relationships involving agencies and banks like Moody's Investors Service, Standard & Poor's, and international lenders participating in syndicated facilities.

Category:Payment service providers Category:Financial services companies of the United States