US Bank 2012 Annual Report Download - page 19

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U.S. BANCORP 15
Prepared for prepaid predominance
Though we have been in the prepaid card business for
many years through gift card issuance, AccelaPay, campus
cards and others (see above), U.S. Bank has taken a
significant step toward being the prepaid frontrunner
with the recent acquisition of FSV Payment Systems Inc.,
a leading processor of prepaid cards and payroll cards for
large, national employers such as McDonalds and Costco.
With that transaction, we become one of the largest
commercial bank payroll card processors in the industry,
and we double our prepaid card business. We also gain
a powerful prepaid processing platform that not only
allows us to bring processing in-house, but also lets us
provide full-service, end-to-end solutions very efficiently
and with the flexibility to serve unique needs of customers.
Serving the merchants
of South America
In 2010, our wholly owned subsidiary Elavon, a leading
global payments provider, joined with Credicard, a wholly
owned subsidiary of Citi, to create a new merchant services
company to offer payment services to the Brazilian market-
place for both small and national level merchants. The
timing was right for Elavon’s arrival as the first global
merchant acquiring player — Brazil has experienced 20+
percent annual credit card market growth since 2005.
In a country so dynamic and large, the growing market
demanded scale, experience, innovation and superior
service quality, all of which Elavon delivered — a comple-
ment to Credicard’s experience and brand recognition.
Elavon’s robust processing platform, innovative payment
solutions and secure point-of-sale devices for mobile
acceptance were major competitive advantages for the
venture. We have since established licenses with Visa
and MasterCard and implemented a Brazilian processing
platform. We processed transactions for our first Brazilian
customer in February 2012 and by November had processed
our one millionth transaction. We now have more than
5,000 active customers and a healthy pipeline of
tier-one prospects.