The Sunday Times has reported that Allied Irish Banks (AIB), Ireland’s largest credit card provider with a 34% share of the market, has been approached by First Data with a proposal that would see the e-payments company take over its credit card processing operations.
According to the report, substantial cost savings of potentially tens of millions a year could be made by AIB through outsourcing its credit card operations, a strategy that the Bank of Ireland has followed for many years.
First Data already has credit card processing deals with numerous banks, allowing it to service 1,700 card issuers. The company also recently signed a long-term strategic alliance to process cards for Barclaycard.
According to the Sunday Times, if it were to acquire AIB’s card processing operations, First Data would handle all aspects of the credit card and loan processing except card issuing.
A spokesman for the Irish Bank Officials Association has stated that the union is unaware of any talks.
