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4
Payment Providers
Our issuer processing business provides solutions
to payment providers such as financial institutions,
major retailers and emerging payment players within
our North America and international segments.
As payments move beyond plastic, “payment
providers” is a clearer way to describe the many
various parties who now rely on us to empower
payments.
This is an exceptionally strong part of our business,
reaching more than 700 million accounts and 400
payment providers worldwide.
In 2015, our market share reached approximately
40 percent of all Visa® and MasterCard® credit card
accounts in the United States*. We ended the year
with 415 million traditional accounts in North America
(excluding prepaid, government services and single-
use accounts, which can vary substantially and are
less correlated to revenue). We are now the
number-one provider of these services in the
United States, and ranked second in Europe**.
This year’s highlights included the largest single
cardholder conversion in the history of payments*:
the Bank of America® consumer portfolio. In 2015,
we also participated in the launch of mobile
payments in the United States for Android Pay™
and Samsung Pay™.
We achieved several milestones in our business and
IT strategy, Surround®, in 2015. These included a pilot
with Royal Bank of Canada®, the largest financial
institution in Canada.
Most importantly, we’ve initiated a strong customer
experience program, which will improve our ability
to offer more relevant products and greater value
to our clients.
In our international segment, the positive story
continued with stronger revenue growth and margins.
Four years ago, we announced a margin target of 18
percent, and I’m proud to say that we achieved that
goal
—
despite the somewhat fragile and uncertain
state of the European and Brazilian economies.
We’re still seeing transformation, cost-cutting and
regulatory changes across the industry. But TSYS
remains active in key international markets, thanks
to the strong foundation in our TS2® platform and
our PRIMESM business solutions.
We remain at the forefront of new mobile developments
,
assisting major merchants in offering Apple Pay®
in the United Kingdom in 2015, following our initial
support in the United States for this easy, secure and
private payment method. Our collaborative effort
with China UnionPay®
—
CUP Data
—
continues to
exceed expectations, and we’re pursuing additional
opportunities to do business together.
* Nilson Report
* * Based on Revenue and AOF