It seems that the rate of acquisitions in payments is picking up. Today it was announced that First Data has agreed to buy Acculynk. Acculynk’s claim to fame is acceptance technology for browser based purchases with a PIN debit card:
The idea of allowing consumers to use PIN debit cards to pay online merchants has been a tough sell in the payments business, but observers hope a deal announced Thursday may give it a much-needed boost. Processing kingpin First Data Corp. said it will acquire Acculynk Inc., a 9-year-old Atlanta-based company that markets technology called PaySecure to enable buyers to use PIN-debit cards to make purchases on the Web via laptops or smart phones.
In the deal, First Data, also based in Atlanta, will pick up Acculynk’s other services, including Payzur, a person-to-person payment service based on PIN-debit routing, and a government-payment service. Terms were not announced, and a closing date has not yet been set.
Merchants are looking for solutions that will allow them to route transactions based on business rules that might route a transaction through the least risky path or the least expensive path. Adding Acculynk will provide more options to “smart routing” capabilities for First Data clients;
First Data clearly hopes the deal will bolster its merchant offering by relying on PaySecure’s connections to major debit networks, including Accel/Exchange, NYCE, Shazam, and First Data’s own Star system. Altogether, Acculynk has been able to leverage links to half a dozen domestic networks and three international systems to develop additional services, including single- and dual-message PINless transactions and so-called push payments, often used by on-demand platforms for mass payouts.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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