The recent changes in quarterly processing volume at Total System Services Inc. reflect the effects of an undulating global economy and market consolidation.
“The numbers as a whole have moved up or down in conjunction with the overall economy,” says a spokesperson for the Columbus, Ga.-based transactions processor. “As the economy took a downturn, and credit transactions decreased across the board, our numbers dropped as well. As the economy improved, and cardholder transactions started to increase, our numbers started to increase as well.”
Overall transactions peaked during the second quarter of 2008, when TSYS processed 3.23 billion transactions globally for issuers and acquirers. The low point came in the 2009 first quarter, when the company processed 2.96 billion transactions.
But these totals alone fail to reveal shifts within the types of transactions TSYS processed during the two-year period. While international issuer transaction volume grew, activity from North America decreased, TSYS says. For example, North America issuer transactions peaked at 1.7 billion in the third quarter of 2008, but have since fallen to 1.46 billion in the first quarter of this year, a 16.4% decrease. During the same period, international issuer transactions increased 3.4%, to 281.3 million from 272.1 million.
North America activity took a hit because of several factors, such as JPMorgan Chase & Co.’s acquisition of Washington Mutual Inc., Well Fargo & Co.’s purchase of Wachovia Corp. and the purchase by Alliance Data Systems Corp. of Charming Shoppes Inc.’s credit card receivables. All were former TSYS clients. TSYS also lost Bank of America Corp. and Nordstrom Inc. as processing clients.
“Meanwhile, we have added several new clients in the international segment, such as Deutsche Bank and Degussa Bank in Germany and Carrefour in Brazil, which have helped our numbers in that segment,” the TSYS spokesperson says.
