MasterCard Inc. said Monday that USAA Federal Savings Bank has signed up for its Integrated Processing Solutions debit platform.
In a news release, the Purchase, N.Y., company said the platform is designed to help issuers launch new products and services efficiently and with "minimal infrastructure investment" by relying on its "predetermined parameters."
The deal with the $35.7 billion-asset bank follows ones with Travelex Group and Swiss Bankers Prepaid Services Ltd. for prepaid processing using IPS.
USAA, of San Antonio, already issues MasterCard-branded debit cards.
IPS, which MasterCard introduced in April of last year, offers a single processing system that handles signature debit, PIN debit, prepaid and automated teller machine transactions.
In May, Timothy Murphy, MasterCard's group executive of core products, told American Banker that there had been a "shifting of focus" for the IPS platform from debit to prepaid, an area where the company sees large growth potential. Murphy said MasterCard was continuing to fight for debit business, where it has a "scale disadvantage" compared with its principal rival, Visa Inc.
MasterCard is scheduled to report third-quarter results today.