The two companies aim to leverage their complementary strengths in development, manufacture and sale of highly secure payment systems.

Thales Group is a world leader in international electronics and systems with operations in more than 30 countries and over 61,500 employees. The Thales Group generated revenue of 10.6 billion Euros (approximately A$18 billion) in 2003. Thales' e-Transactions business is a leader in systems for secure electronic card payment and provides fixed, portable, mobile and integrated payment solutions for a range of markets including financial services, retail, government and unattended payments.

Keycorp believes the relationship with Thales will enable it to expand the range of products it offers to customers as well as broaden the capabilities of both companies through the exchange of technology expertise.

The first milestone in the agreement is for Keycorp to distribute and install Thales Artema payment terminals for specific opportunities in its markets.

The second milestone will be the conclusion of a broader agreement covering close technical, sales and marketing cooperation for the development of future terminal products. This would involve Keycorp becoming the Centre of Excellence for software architecture, with Thales managing the development of hardware and system software.

Although the focus of the relationship is the payment terminals business, the two companies will also explore other areas of common interest.

Keycorp's Chief Executive Officer, Bruce Thompson, said the relationship with Thales would have major benefits for Keycorp, its customers and shareholders, "It is widely understood that the terminals business is highly competitive," he said. "Although we have been very successful in our core markets of Australia, New Zealand and Canada, we have made limited headway elsewhere."

"Tackling this business alongside a much bigger player like Thales gives us tremendous advantages, not only in economies of scale with product development, manufacturing and international sales, but in access to a wider range of technology solutions for our customers."

Jan-Erik Rottinghuis, VP and Managing Director of Thales' e-Transactions business, said his company looked forward to a fruitful business relationship with Keycorp. "By working together to share our expertise and world-wide presence in secure electronic payments, Thales and Keycorp will be a formidable combination," he said.