First Data

First Data Corporation
Company type	Public (until 2007), Private (2007–2019)
Industry	Financial services, Payment processing
Founded	June 1969; 57 years ago
Founder	Perry "Bill" Esping, Mike Liddy, Jack Weekly
Defunct	July 29, 2019
Fate	Acquired by Fiserv
Headquarters	Atlanta, United States
Area served	United States, Ireland, India, Brazil
Key people	Frank Bisignano (CEO and Chairman)
Products	STAR Network, SpendTrend Report, Insightics platform, Clover Network, Perka, Gyft, Fraud Detect
Number of employees	24,000
Parent	Fiserv (since 2019)

First Data Corporation was a financial services firm based in Atlanta, Georgia, USA. Its STAR Network facilitated nationwide debit card acceptance at over 2 million retail POS, ATM, and online locations, representing nearly one-third of all debit cards in the United States.

Serving six million merchants, First Data possessed the largest merchant portfolio within the payments sector. It managed 45% of all credit and debit card transactions in the U.S., including prepaid gift card solutions for prominent brands such as Starbucks. The company processed roughly 2,800 transactions every second and handled $2.2 trillion in card transactions annually, holding an 80% market share in the gas and grocery industries as of 2014. First Data’s SpendTrend Report was frequently referenced by major outlets like WSJ, USA Today, ESPN, The New York Times, and Bloomberg.

On January 16, 2019, Fiserv announced a $22 billion all-stock acquisition of First Data, which was finalized on July 29, 2019.

History

Originating in 1969, the Mid-America Bankcard Association (MABA) was established in Omaha, Nebraska as a nonprofit cooperative focused on bankcard processing. In June 1971, Perry "Bill" Esping, Mike Liddy, and Jack Weekly founded First Data Resources (FDR) in Omaha to provide processing services for MABA. By 1976, First Data became the pioneer processor for Visa and MasterCard credit cards. American Express Information Services Corporation (ISC) purchased an 80% stake in First Data in 1980 and completed full ownership by 1983. First Data Corporation was officially incorporated on April 7, 1989. In July 1991, it acquired Signet Ltd, the operator of the Access card in the UK, from NatWest, HSBC UK, Lloyds Bank, and Royal Bank of Scotland.

First Data separated from American Express and went public in 1992. In 1995, it merged with First Financial Management Corp. (FFMC), restructuring into three divisions serving issuers, merchants, and consumers. This merger also brought Western Union under First Data’s umbrella.

Expansion

From 2001 to 2005, First Data grew through acquisitions including PaySys International and its VisionPLUS Payment Software System in 2001. The $6.6 billion merger with Concord EFS in 2004 incorporated the STAR Network and expanded PIN-based debit acceptance to over 1.9 million locations. Other acquisitions during this period included GovOne, eONEGlobal, Paymap, Inc., and Taxware; many were subsequently divested or integrated.

On January 26, 2006, First Data announced plans to spin off Western Union as a separate publicly traded company; this was completed on September 29, 2006.

On April 2, 2007, private equity firm KKR agreed to purchase First Data in one of the largest leveraged buyouts ever completed. The acquisition closed on October 1, 2007, with Michael Capellas appointed CEO. Following this transition to private ownership, First Data’s shares were removed from the NYSE on September 24, 2007. The leveraged buyout involved $24 billion of debt, resulting in significant leverage for the company.

In June 2014, First Data secured $3.5 billion via a private placement—$1.2 billion from KKR and $2.3 billion from institutional investors—allowing it to reduce debt by $3.3 billion and improve leverage ratios by 1.3 turns while lowering annual interest expenses. Shortly after KKR’s acquisition, approximately 6% of employees were laid off across North America, Europe, and Australia.

At the 2008 Democratic National Convention, First Data showcased contactless payment technology utilizing Go-Tag NFC stickers for transactions. Additionally, it served as the trusted service manager for Google Wallet’s mobile payment platform launched in 2011.

First Data entered Ireland through a joint venture with Allied Irish Banks named AIB Merchant Services in January 2008 and acquired ICICI Bank's merchant services division in India for $80 million in 2009. That same year it partnered with Bank of America to create Bank of America Merchant Services.

After evaluating more than sixty startups, First Data acquired POS startup Clover Network in October 2013; it also purchased cardless loyalty company Perka and gift card platform Gyft in 2014.

In March 2010, Joe Forehand was appointed chairman and interim CEO; Jonathan Judge assumed both roles in September 2010 until his early retirement in January 2013. Edward Labry then took over as interim CEO.

Leadership under Frank Bisignano

In April 2013, First Data named former JPMorgan Chase COO Frank Bisignano as its CEO, and he assumed the role of Chairman in March 2014. Upon his appointment, Bisignano implemented an equity ownership initiative encompassing all 24,000 employee-owners, emphasizing a strategic commitment to workforce involvement and corporate expansion.

Bisignano enhanced the leadership team by recruiting prominent executives such as Sanjiv Das, Himanshu Patel, Guy Chiarello, Cindy Armine-Klein, Andrew Gelb, Adam Rosman, Carmen Menendez-Puerto, Joseph Plumeri, Christopher Augustin, and Michael Manos. These professionals contributed deep sector expertise to support First Data's growth and innovation efforts.

In 2014, the STAR ATM Network adopted Visa and MasterCard standardized application IDs for EMV-compliant debit transactions, improving both security and compatibility. Bisignano’s vision included repositioning First Data as a technology solutions provider for small- and medium-sized enterprises (SMEs). To this end, in June 2014, the company unveiled Insightics—a cloud-based analytics platform developed in partnership with Palantir Technologies—designed to assist SMEs in tracking essential business performance indicators, reflecting a deliberate strategy to capture the expanding SME segment.

First Data broadened its international footprint by launching Bin, an acquiring solution customized for the Brazilian market. Additionally, in September 2014, the company allied with Apple Pay as a token service provider integrated within the STAR Network, facilitating secure point-of-sale transactions at major U.S. retailers such as McDonald’s.

October 2014 saw the release of the Enhanced TransArmor Solution aimed at small businesses to secure payment card data through multi-tiered protective measures. Subsequent collaborations with Capgemini and Verifone focused on advancing next-generation payment technologies and reinforcing security for integrated point-of-sale systems.

In 2015, First Data partnered with Samsung Pay to enable NFC payment capabilities leveraging its existing infrastructure. February of that year marked a significant financial achievement when First Data reported its first profitable quarter since privatization in 2007—a milestone after more than seven years.

The company pursued targeted acquisitions to diversify its offerings: acquiring Transaction Wireless (specializing in gift card solutions) in July 2015 and Spree Commerce (an open source e-commerce platform) in September 2015.

The highly anticipated October 2015 IPO became the largest U.S. initial public offering that year, raising $2.56 billion by selling 160 million shares at $16 each—below the preliminary range of $18 to $20 per share. The primary objective was to substantially reduce debt levels while freeing capital to invest in technology enhancements and business growth. This public offering highlighted First Data’s dedication to strengthening financial health and sustaining a competitive edge within the payments sector.

Developments in 2016 and 2017

In October 2016, First Data collaborated with Alipay to bring Alipay’s mobile payment processing capabilities to the U.S. market. By 2017, they had integrated "point-of-sale" technology enabling Clover to become the first POS system accepting Alipay payments.

The year 2017 also saw the launch of the Integrated Solutions Group (ISG), headed by Edward Jackson, which aimed to expand First Data’s business model through strategic technology partnerships. ShopKeep became ISG’s inaugural partner, enabling iPads to operate as cash registers. In March of that year, First Data acquired Acculynk to enhance its ecommerce debit payment solutions.

May 2017 introduced Global PFAC—a unified integration platform tailored for payment facilitators. Later that month on May 29, First Data announced a $750 million acquisition of CardConnect, which processed approximately $26 billion annually—significantly increasing its market presence in payment processing. Following this acquisition, CardConnect became involved in legal disputes with Shift4.

In June, First Data rolled out Fraud Detect, an advanced cybersecurity tool utilizing artificial intelligence, machine learning algorithms, fraud scoring techniques, and Dark Web monitoring to mitigate transaction fraud risks. In October 2017, the company declared plans to acquire BluePay for $760 million; BluePay processed around $19 billion annually—further reinforcing First Data’s position within the industry.

Growth in the Indian Market

First Data formed a strategic alliance with ICICI Bank, the leading private bank in India, to deliver merchant solutions via ICICI Merchant Services. This partnership provides Indian businesses holding ICICI Bank accounts with access to both domestic and international merchant accounts. The collaboration features 3D Secure merchant capabilities and MOTO terminals for credit card transactions, strengthening First Data’s foothold within India’s expanding payment sector.

Fiserv Acquisition

On January 16, 2019, First Data revealed plans to be acquired by Fiserv through an all-stock deal valued at $22 billion. Completed on July 29, 2019, this acquisition considerably broadened Fiserv’s global footprint and increased its share of the payments market. The merger resulted in a unified organization offering a more comprehensive suite of products and improved competitive positioning.

Corporate Headquarters

Initially based in Omaha, Nebraska, First Data shifted its headquarters to Greenwood Village, Colorado in 1992. The company later relocated to Atlanta, Georgia in 2009 to better align with its strategic direction. Despite these moves, First Data’s main executive offices continue to operate out of New York City, reflecting the complexity of its corporate framework and international business operations.

Corporate Social Responsibility

In October 2014, First Data introduced First Data Salutes, a company-wide initiative aimed at supporting military veterans and veteran-owned enterprises while aiding service members’ transition into civilian employment.

By 2015, the company pledged $7 million over seven years to the Institute for Veterans and Military Families at Syracuse University, supporting veteran education, research, and business training programs. That same year, First Data was recognized as one of DiversityInc's 25 Noteworthy Companies and earned the top spot on the Military Times "Best for Vets: Employers 2017" ranking.

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