Atlanta-based First Data has teamed up with NTT Data, bankcard outfit and Mitsubishi-Bank of Tokyo subsidiary DC Card, and information systems provider Diamond Computer Service (DCS) to launch Nihon Card Processing. The new company will be the first in Japan to provide third-party credit card processing outsourcing services to the world's second largest credit card market.
The new venture will use First Data's credit card processing expertise and the credit card processing systems and information systems developed by DC Card and DCS combined with NTT Data's information technology to provide large-scale, low-cost credit card processing outsourcing services, say the companies. The partners say they will provide advanced services to accommodate the changing payments market, including Internet and smart card technology.
Nihon's first customer, DC Card, has a credit card portfolio of more than 8 million Visa and MasterCard credit cards and is initially providing the processing infrastructure for the joint venture.
As the company builds the next-generation outsourcing platform, Nihon says it will invite all credit card companies in Japan to participate in a consortium to be launched this summer. "The consortium will help the joint venture ensure that the system provides what Japanese card issuers need to produce the most cost savings and best enhanced services," says Ric Duques, First Data chairman and CEO.