Westpac outsources Eftpos network

Westpac outsources Eftpos network

Australia's Westpac has signed a five-year A$100 million contract with Keycorp for the upgrade and management of its entire fleet of Eftpos terminals.

Westpac currently maintains a fleet of over 70,000 terminals for processing electronic transactions at the point of sale.

Westpac's general manager, product and payments, Sally Herman, says the decision to outsource maintenance of the network will enable the bank to concentrate on the provision of core banking services. The deal is expected to deliver savings of five per cent, as well as provide an updated fleet.

Under the agreement, Fox Technology will provide the software, which will operate on Keycorp terminals. Delivery, installation and maintenance will be provided by Keycorp's services arm.

Keycorp's CEO, Bruce Thompson says outsourcing of Eftpos terminal managed services is a trend that is gathering momentum throughout the world. "Keycorp aims to be a major player in this sector."

Shares in the Sydney-based vendor shot up 20% on news of the deal to 162 cents.

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