First Data flies free from BankWest
An outsourced, card issuing model for CBA subsidiary Bankwest came to an end last week, with Fairfax Media reporting that the banking behemoth was finally able to insert its own card platforms into Bankwest seven years after taking control.FirstData had a ten-year contract with Bankwest, a style of outsourcing once fashionable in parts of the industry. First Data seems to have eked out a few months past the August 2015 end point of their contract.First Data conceded in the prospectus for its recent IPO that it had been taking heat on Cashcard, a business losing traction in a rough market. In its 2014 financial report for Australia, First Data reported a A$87 million write down on Cashcard. Card issuing also fared poorly.First Data Corporation Australia (Holdings) put its net assets at the end of 2014 at $49 million, close to half the 2013 assessment.This outrider of the e-commerce vanguard has converts, but not many, to its version of payments glory.Sam Itzcovitz, head of global solutions for Australia and New Zealand at First Data told Fairfax Media that it "wants to double its 11,000 merchant customers in two years in physical payments via card terminals as well as online and in 'payment gateways'."Australia revenues for First Data are down 500 basis points to ten per cent over two years.