Deutsche Postbank has signed a joint venture agreement with First Data Merchant Services, a subsidiary of First Data Corp, to offer merchant processing services for credit card and other electronic payments.
The business is expected to start in the third quarter of 2001 following regulatory clearance from Germany and the European Union.
Wulf von Schimmelmann, executive-chairperson, Postbank, says: "With this joint venture, we can offer extensive payment processing services, accepting everything from cards to cashless payments."
The service includes advice and installation of the card terminals.
From 1 January 2002, the eurocheque guarantee will be abolished. Cheques will have to be written in euros for countries participating in the single currency.
Pamela Patsley, president and CEO of First Data Merchant Services and senior executive vice-president of First Data Corp, says this will require many merchants and service providers to view card and other cashless payments as a secure replacement option for consumers.
The new company will service the existing merchant customers of Deutsche Postbank, marketing the solution to 400,000 Postbank customers through the DeutschePost World Net's distribution channels. It will also use sales channels similar to those used for First Data Merchant Services alliances.