U.S. Bank ($352 billion in assets) is acquiring FSV Payments Systems, a prepaid card processor, in a move that the bank said will strengthen its position in the prepaid market, according to a statement released today by the bank. With the acquisition Minneapolis-based U.S. Bank will be able to off end-to-end prepaid card programs and services by using FSV's platform, the bank said in the statement.
"The prepaid market has been a strategic focus for our business over the last decade and we are pleased to expand our capabilities and offer a fuller suite of prepaid services," Tony Vuoto, executive ice president of U.S. Bank's retail payments solutions, said in the statement.
FSV manages and processes its own prepaid programs, and has been working in prepaid cards since 1999, the statement read. The company offers prepaid programs and services in many areas including business-to-business and direct-to-consumer.
Rick Savard, FSV's CEO, added that FSV's processing platform and ability to create tailored solutions will complement U.S. Bank's knowledge and expertise of different customer segments in the prepaid market. The bank already has prepaid cards and services in the corporate, consumer, government and campus segments, the statement noted.
U.S. Bank also said in the statement that current FSV clients would not experience any disruption to their service while the acquisition is completed. The acquisition is expected to conclude in December (pending regulatory approval). After its completion FSV will become part of U.S. Bank's Elan Financial Services brand.