NetSpend 2013 Annual Report Download - page 5

Since , we have been on a journey to
transform our merchant acquiring business
from a third-party merchant processor to
a direct merchant acquirer.
* The Nilson Report, April 2013, Issue 1,016
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top-50 Visa and MasterCard consumer credit
card issuers in the United States.* TS2 is the
processing platform of choice for banks in North
America and Europe. We also have a growing
licensing business for our issuer, acquirer and
prepaid card management software (PRIMESM) that
banks in more than 75 countries have embraced
because of its natural fit for both developed and
developing nations.
• Enterprise Innovation: In the next era of
commerce, there will be an historic opportunity
for all players across the payments space to
influence change and transform the customer
experience. The financial and societal implications
of this shift should not be understated
— it is the
opportunity of a lifetime, and our team is energized
and ready to rise to the occasion. To this end, we
have introduced the TSYS Idea CenterSM, which
brings our team members’ and clients’ ideas to
life, and transforms them into innovative new
products and solutions. In the TSYS Idea Center,
team members are given hands-on interaction
with new technology, in a culture of innovation
that is extended to clients and leads to productive
collaboration. We realize that positioning ourselves
as an innovation company is certainly not the
easiest path — especially in the legacy payments
industry, which is becoming increasingly
influenced by hyper-connectivity, multiple smart
devices and voluminous amounts of data. But our
decision to continuously reinvent our company
influences everything we do: how we diversify
revenue, how we cross-sell, how we outline
enterprise priorities, how we invest, and
how we go about creating and maintaining
shareholder value.
Why We Win in the Marketplace
Imagine if you were to empty your home of all your
possessions, sprawl them across your front lawn, and
then question the usefulness of every item as you
brought it back in the door. You may have different
ideas about what is necessary and what contributes
toward the most productive, meaningful way forward.
At TSYS, we have taken a thoughtful look in the
mirror and determined which ideas to discard
and which to carry with us as 2014 progresses.
I’d like to share with you the “keepers” and why
I believe we will win with them.
We make thoughtful acquisitions: The
acquisitions of ProPay® and Central Payment®
continue to fuel the growth in our direct merchant
acquiring business, offering us new distribution
and product capabilities.
In July 2013, we announced the completion of
the acquisition of NetSpend. It operates in one of
the fastest growing areas of payments
— prepaid.
NetSpend is a high-growth company in a fast-
growing area that is complementary to TSYS.
We will continue to look for companies with
synergies that are consistent with our focus
on being a comprehensive payment
solutions provider.
We make strategic capital investments
in our businesses: Having the right technology
blueprint is essential for the future of payments and
commerce. We’ve invested capital and resources in
major technology upgrades for both our merchant
and issuing businesses.