Online sales and software development are two of the most dynamic categories in the payments processing market, and First Data's acquisition of BluePay will give it inroads into both.
"They're big in the card not present space and with online developers," said First Data CEO Frank Bisignano during a conference call to announce First Data's $760 million acquisition of BluePay from its current owners TA Associates and BluePay's management. The deal is expected to close in the fourth quarter pending regulatory approval.
![Frank Bisignano, chairman and CEO of First Data.](https://arizent.brightspotcdn.com/dims4/default/97ea683/2147483647/strip/true/crop/4000x2667+0+0/resize/740x493!/quality/90/?url=https%3A%2F%2Fsource-media-brightspot.s3.us-east-1.amazonaws.com%2F8e%2F07%2F98f6142044ba93057d0a7c535912%2Fbisignanofdbl.jpg)
BluePay, which was one of First Data's distribution partners, processes about $19 billion in annual payments volume for approximately 77,000 merchants in the U.S. and Canada. It's also integrated into more than 450 independent software vendors, and gets about 50% of its business from online payments, or "card not present" transactions.
Most ISVs do not view payments as a competitive play, according to First Data, creating an opportunity to expand payments revenue and relationships over time.
"The ISV space is highly attractive with high merchant retention rate," Bisignano said, saying ISVs have been a major strategy for First Data.
As part of that strategy, First Data recently acquired
BluePay will add an e-commerce component to CardConnect's expertise in point of sale technology, Bisignano said.
"If you take that plus what BluePay brings in, we went from a plan a year and a half ago to a full hand today," Bisignano said.
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