The 5,000 merchant locations and more than 50 independent sales organizations Payment Alliance International acquired from Comdata Processing Systems already have transitioned to using Payment Alliance’s products and services, says Donna Embry, senior vice president of Louisville, Ky.-based Payment Alliance.
The merchant-service provider announced the acquisition of Comdata’s merchant-processing business Jan. 20 (
“The ISOs have been trained and given the full go-ahead to sell the [Payment Alliance] product both to existing as well as new customers,” says Embry.
The acquisition gives the company an opportunity to expand beyond traditional products, such as card and check services, and to offer such additional products as remote-deposit capture and ATM services to an expanded market, she says.
Payment Alliance already has moved Comdata’s employees to its corporate facility in Louisville, and it intends to retain “the majority” of Comdata’s personnel, according to the company.
Comdata may have decided to sell its merchant-processing portfolio to Payment Alliance to focus on providing gift card products and services, says Adil Moussa, an analyst with Boston-based Aite Group LLC.
Comdata is a subsidiary of Stored Value Solutions, a Louisville-based provider of gift card products and services. Representatives from Comdata did not return requests for comment.
“There is still a lot more to be done with gift cards in terms of processing and innovation and functionality,” says Moussa. “If you get into the merchant-processing business, … it creates a lot of pressure on resources to manage both and try to grow both lines simultaneously.”
Payment Alliance serves more than 60,000 customers nationwide.
