First Data Corporation operates as a leading global provider of electronic commerce and payment processing services, handling merchant transactions, credit and debit card processing, and money transfer operations. Spun off from American Express in 1992, the company evolved from a Nebraska-based bankcard processing cooperative into a multinational payments technology giant serving millions of merchant locations worldwide.
Originally founded in 1971 as First Data Resources providing processing services to the Mid-America Bankcard Association, the company expanded through strategic acquisitions and geographic diversification across 34 countries. First Data serves 6.2 million merchant locations through comprehensive payment solutions including e-commerce processing, card issuing, check processing, and money order services.
In 2007, Kohlberg Kravis Roberts acquired First Data Corporation in one of history’s largest leveraged buyouts, taking the company private and initiating significant operational restructuring. The transaction valued at approximately $29 billion with $24 billion debt financing reshaped the payments processing industry and established First Data’s position as a privately held financial technology infrastructure provider.
Key Stats
First Data Corporation History
First Data Corporation Founders
First Data Corporation Competitors
First Data Corporation competes in the global payment processing and financial technology sector against merchant acquirers, payment networks, and technology providers. The company faces competition from established financial services firms, emerging fintech startups, and integrated payment solutions across merchant services, card issuing, and electronic commerce processing segments.
| Competitor | Primary Services | Market Segment |
|---|---|---|
| Visa | Payment Network | Card Processing |
| Mastercard | Payment Network | Card Processing |
| PayPal | Digital Payments | E-commerce Processing |
| Square | Payment Processing | Merchant Services |
| Worldpay | Payment Processing | Merchant Acquiring |
| Global Payments | Payment Technology | Merchant Services |
| Fiserv | Financial Technology | Payment Processing |
| ADP | Payment Solutions | Payment Processing |
| FIS | Financial Technology | Payment Systems |
| Stripe | Payment Processing | Online Payments |
First Data Corporation Acquisitions
First Data Corporation pursued aggressive acquisition strategies to expand geographic reach, enhance technology capabilities, and consolidate payment processing market share. The company’s acquisition philosophy emphasized complementary businesses strengthening core payment processing operations while adding innovative technologies and entering high-growth international markets.
The transformative 1995 merger with First Financial Management Corp. brought Western Union into First Data’s portfolio, significantly expanding consumer payment capabilities and agent location networks. This acquisition reorganized First Data into three business units serving card issuers, merchants, and consumers, diversifying beyond pure transaction processing into money transfer and consumer financial services.
Between 2001 and 2005, First Data executed expansion through multiple strategic acquisitions including PaySys International and their globally successful VisionPLUS Payment Software System in 2001. The 2004 merger with Concord EFS for $6.6 billion represented the company’s largest acquisition, adding STAR Network and PIN-based debit acceptance at over 1.9 million ATM and retail locations nationwide.
Additional acquisitions during this expansion period included GovOne for government payment processing, Paymap Inc. servicing electronic payment products, and Taxware which merged into newly formed entity Velosant spearheading supply chain management initiatives. First Data also established eONEGlobal as a venture capital fund investing in emerging payment technologies and established consumer payments brand for direct debit retail marketplace offerings.
First Data’s international expansion strategy included acquiring merchant services businesses in key growth markets. The 2008 joint venture with Allied Irish Banks created AIB Merchant Services entering Ireland market on January 18. In 2009, First Data acquired ICICI Bank’s merchant services business for $80 million, establishing significant presence in India’s rapidly expanding electronic payment ecosystem.
The 2013 acquisitions of POS startup Clover and cardless mobile loyalty startup Perka demonstrated First Data’s commitment to mobile payment innovation and point-of-sale technology advancement. These strategic purchases positioned the company to compete against emerging fintech competitors disrupting traditional payment processing through smartphone-based solutions and integrated merchant services platforms.
First Data Corporation Market Capitalization
First Data Corporation operated as a publicly traded company from its 1992 spin-off from American Express until the 2007 Kohlberg Kravis Roberts leveraged buyout. Following the acquisition, First Data’s stock was delisted from the New York Stock Exchange on September 24, 2007, eliminating public market capitalization as the company transitioned to private ownership.
First Data Corporation Revenue
First Data Corporation generates substantial revenue through merchant acquiring services, card issuing and processing, payment network operations, and e-commerce solutions. The company’s financial performance reflects its position as a global payment processing infrastructure provider, though detailed public financial disclosure ended following the 2007 privatization.