US e-payments processor First Data has signed an agreement to acquire Argencard, a provider of electronic payment processing services to banks in Argentina and Uruguay. Terms of the agreement were not disclosed.
Argencard, which is based in Buenos Aires, provides card issuing and merchant acquiring processing services to more than 70 banks in the region.
The company offers payment processing support for credit, debit, private label and pre-paid cards, as well as embossing, printing of statements, call centre services, collections and telemarketing.
Commenting on the deal, Pam Patsley, president, First Data, says Argentina is one of the largest markets in Latin America, and there is great potential for sustained electronic payments growth in the region.
"This acquisition will differentiate us from others in the market by allowing us to provide a proven, full service payment processing solution to leading financial institutions in Argentina and Uruguay. It also sets the foundation for our continued expansion across South America," says Patsley.
The acquisition is subject to approval by the relevant authorities and is expected to be completed by the fourth quarter of this year.