Scotiabank outsources merchant card business to First Data

Mexican financial group Scotiabank Inverlat has closed an outsourcing deal with First Data Corp (NYSE: FDC) for its merchant credit card business. Under terms of the 10-year agreement, First Data will take over management of Scotiabank Inverlat's merchant credit card processing operations, as well as related sales and marketing activities, operating under the ScotiaPOS banner. ScotiaPOS will be marketed through Scotiabank Inverlat's network of 400 retail branches. Business development will focus on the group's existing 30,000 commercial clients, 100,000 other merchants who accept credit and debit card transactions, plus businesses not currently equipped for cards. Denver-based First Data provides credit, debit, smart card and stored-value card issuing and merchant transaction processing services; e-commerce solutions; and check processing and verification services to financial institutions. Its best known subsidiary is money transfer firm Western Union. Scotiabank Inverlat controls Mexico's sixth largest bank and is a subsidiary of Canada's Scotiabank (NYSE: BNS), which also has units in the Caribbean, Chile, Brazil and Central America.