US Bank 2002 Annual Report Download - page 13

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Payment Services
Our unique payment services business specializes in credit and debit card products,
corporate and purchasing card services and ATM and merchant processing.
Customized products and services, coupled with cutting-edge technology, provide
consumers, small and large merchants, government entities, financial institutions,
small businesses, large corporations and co-brand partners with the most advanced
payment services tools available. Revenue growth in this business is accelerating
and its ultimate long-term potential is virtually limitless.
Successes
•We upgraded an additional
1,376 ATMs to meet the enhanced
functionality of our network of 3,408
Super ATMs. Innovative products and
services available include stamp dispensing, event ticket sales,
voice guidance, multi-language support, pre-paid phone minutes,
PIN changes, statements, check reorders and check copy requests.
•More than 3,300 financial institutions, located in every state and Puerto
Rico, choose Elan Financial Services for credit card issuing and to fulfill
their ATM, debit card and merchant processing needs.
•PowerTrack, our innovative online business to business payment
and transaction processing system, is our fastest growing Corporate
Payment Systems product, with 2002 revenue growth of 25 percent
and income contribution growth of 60 percent.
•Leading the industry, Corporate Payment Systems successfully held its
first ever Financial Supply Chain conference, attended by 1,000 clients.
•Corporate Payment Systems signed its first Global Corporate
Payment Systems client, marking the start of exciting new growth
and revenue potential.
•Introduced eCommerce Suite, an e-procurement product that helps
businesses empower their employees to make company purchases
while simplifying the procurement process.
•Retail Payment Solutions launched the U.S. Bank Payroll (AccelaPay)
and Child Support (ReliaCard) products in 2002; one of the first four
issuers to launch payroll product.
•Retail Payment Solutions successfully launched REI®Visa and Korean
Air SKYPASS®co-brand credit card programs.
•Continued to expand U.S. Bank ATM convenience in non-bank
locations such as corporate offices, manufacturing facilities, shopping
centers, retailers, supermarkets, gas and convenience stores, colleges
and universities, medical facilities, airports and more.
U.S. Bank Grows in
San Francisco Bay Area
U.S. Bank now offers more convenience
to customers on the West Coast. With the
acquisition of 57 branches in California
from Bay View Bank, completed on
November 1, 2002, U.S. Bank brings a
host of new consumer, commercial and
trust financial products and services to
customers throughout the Greater Bay
Area. The branch purchase and deposit
assumption, which included approximately
$3.3 billion in retail and small business
deposits and $336 million in selected
loans, strengthens our geo-
graphic footprint in California,
providing an entry into the
important, fast growing
communities in the Greater
Bay Area. U.S. Bank now
operates 215 full-service branch
offices in California and 256 ATMs
conveniently located throughout the
state. The 57 branch locations that were
acquired by U.S. Bank are in the following
California markets: San Francisco and
the San Francisco peninsula; San Jose;
Alameda County; Contra Costa County;
Santa Rosa; Vallejo-Fairfield-Sonoma;
and Santa Cruz.
Strengths
•Top commercial bankcard issuer
•Top purchasing bankcard provider
•Top corporate bankcard provider
•Top 2 fleet card provider
•Top 2 freight payments provider
•Top 3 bank-owned ATM network
•Top 3 merchant payment processor
•Top 6 U.S. credit and debit card issuer
in total sales volume
•Top 9 ATM processor
•Top 8 worldwide credit and debit
card issuer in total sales volume
18.7%
Key Business Units
•Corporate Payment Systems
– Travel and entertainment, purchasing,
fleet, freight payment systems and
business to business payments
•Transaction Services
– ATM banking
– Elan Financial Services
•NOVA Information Systems, Inc.
– Merchant processing with top 3
market share
•Retail Payment Solutions
– Relationship-based retail payment
solutions; includes credit, debit and
stored value cards through U.S. Bank,
correspondent agent banks and
co-brand partners
•Processor of 6 percent of all ATM/debit
point of sale transactions in the U.S.
•Processor of ATM/debit/credit
transactions for more than 21 percent
of all banks in the U.S.
•Proprietary technology
•Industry-leading implementation
and service models
U.S. Bancorp 11
Contribution to 2002
U.S. Bancorp Total Net Revenue*