BAMS, First Data JV To Call It Quits In 2020

With their joint venture set to end next year, First Data (now Fiserv) and Bank of America said on Monday (July 29) that they will pursue independent merchant services strategies starting in June 2020. The companies, however, have an agreement to provide Bank of America Merchant Services clients with uninterrupted delivery of products and services through at least June 2023, according to a press release.

Mark Monaco, head of Enterprise Payments at Bank of America, said in the press release, “Payments are at the core of our business, and this announcement is another step forward in our global strategy to provide companies of all sizes an integrated payment offering. We look forward to investing in our merchant solution and delivering the capabilities our clients need to thrive in an ever-changing payments environment.” Monaco continued, “We look forward to continuing our long-standing business relationship with First Data.”

The press release also noted that “First Data will be an important service provider supporting Bank of America’s global payment solutions.”

Guy Chiarello, chief administrative officer of Fiserv, said in the press release, “We are excited for the next phase of our relationship with Bank of America, and are committed to continuing to provide market-leading products and services to the bank and its clients.” Chiarello added, “We look forward to supporting Bank of America’s future merchant services solutions and broader payments strategy as we continue to focus on delivering innovative payment solutions that enable the movement of money and information with ease, speed and convenience.”

Bank of America serves roughly 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,200 lending centers, 1,700 business centers and 2,400 financial centers with a Consumer Investment Financial Solutions Advisor. It also has around 16,600 automated teller machines (ATMs) and digital banking with over 37 million active users, including approximately 28 million mobile users.