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TSYS

From Alfawiki
Total System Services, Inc.
Company typePublic (until 2019 merger)
IndustryFinancial technology
PredecessorColumbus Bank and Trust (originated as part of)
Founded1983
Defunct2019
FateMerged with Global Payments Inc.
SuccessorGlobal Payments Inc.
Headquarters
Columbus, Georgia
,
United States
Area served
North America, Europe
Key people
M. Troy Woods (CEO from 2014)
ProductsPayment processing, merchant services, reloadable prepaid debit cards, payroll cards, demand deposit accounts
Number of employees
24,000+ (2019)
ParentGlobal Payments Inc. (post-merger)

Total System Services, Inc. (TSYS) is a U.S.-based financial technology firm located in Columbus, Georgia. In 2019, TSYS combined with Global Payments Inc, resulting in a prominent technology-driven payments enterprise. TSYS commands a 40% market share as the foremost third-party payment processor for issuing banks across North America and maintains a significant presence in the European market. Its offerings encompass payment processing, merchant services, reloadable prepaid debit card products, payroll cards, and demand deposit accounts tailored to serve the underbanked demographic.

History

TSYS originated in 1959 as part of Columbus Bank and Trust (currently Synovus) and commenced credit card processing services for other financial institutions in 1974. The company went public in 1983. Among its strategic developments were the 1995 integration of merchant processing with Visa Inc. and the 2004 acquisition of Clarity Payment Solutions for $53 million. That same year, TSYS began handling credit card processing for J.P. Morgan Chase and introduced its payments-focused publication, n>genuity, in 2008.

In 2010, TSYS acquired a majority interest in First National Bank of Omaha's merchant acquisition division, rebranding it as TSYS Merchant Solutions, and secured full ownership by 2011. Further expansions included purchasing TermNet (2011), obtaining a controlling stake in Central Payment Co. LLC (2012), acquiring ProPay with its portfolio exceeding 250,000 merchants (2012), and buying prepaid debit card provider Netspend for $1.4 billion in 2013.

November 2013 saw TSYS collaborate with startup Womply to launch TSYS Merchant Insights, delivering analytics solutions to merchants. Leadership shifted in June 2014 when CEO Philip W. Tomlinson retired and M. Troy Woods assumed the role.

TSYS’s growth was bolstered by the $2.35 billion acquisition of TransFirst in 2016, elevating it to the position of sixth-largest U.S. acquirer. That year also marked the company’s full acquisition of TSYS Managed Services EMEA.

The company has played an active role in shaping regulatory policies; notably, its lobbying efforts helped relax Consumer Financial Protection Bureau restrictions on overdraft fees—a critical revenue source representing 10-12% of NetSpend’s income.

Investments included a $25 million enhancement of a former Citigroup card production plant in Columbus, Ohio, increasing annual output capacity to 67 million credit cards by 2017. In 2018, TSYS expanded by acquiring payment technology company Cayan for $1.05 billion and Jacksonville-based iMobile3 for $13.4 million.

The merger with Global Payments valued at $21.5 billion in September 2019 established a global payments leader employing over 24,000 individuals worldwide.

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