First Data and AccorHotels Form Strategic Relationship on Heels of Strong Q3

03:14 11/22/2017

First Data Corporation FDC , a global leader in commerce-enabling technology, announced that it has entered into a strategic agreement with AccorHotels to enable global and cross channel payments.

The AccorHotels Group is a global leader in travel and lifestyle, and a pioneer in digital technology, offering unique experiences in more than 4,200 hotels, resorts and residences, an

“AccorHotels owns some of the most well-recognized hotel brands in the world, and we are delighted to form this long-term relationship with them,” said Gert Vido, Head of Corporate Institutional Sales for First Data in the EMEA region. “As we continue to strengthen our presence throughout EMEA, working with premier partners like AccorHotels will accelerate our efforts to enable global commerce for businesses of all sizes across the region.”

As part of the deal, First Data will power payments for AccorHotels for in-store, online, and mobile transactions, which includes facilitating transactions for AccorHotels’ online booking tool that enables customers to quickly and easily make and pay for reservations online.

First Data will also provide a Nexo central acceptance platform for AccorHotels, based on the new Nexo standard protocols. Nexo standards enable fast and borderless payments acceptance by standardizing the exchange of payment acceptance data between merchants, acquirers, and payment service providers in the EMEA region.

Additionally, First Data will provide tokenization services for AccorHotels. First Data’s tokenization solutions provide a high level of security to protect cardholder data during a transaction.

The phased introduction of the First Data and AccorHotels partnership starts with properties in Germany, France, and the United Kingdom, before continuing into other countries throughout 2018.

“As part of our global digital plan, it is crucial to simplify the guest experience process with seamless, safe, cutting-edge mobile commerce solutions that make it easy to find, book and pay for a room anytime, across 95 countries and more than 4,200 properties,” explains Matthieu Le Louer, Vice President, Client Payment Systems at AccorHotels.

FDC  also recently reported its financial results for the third quarter that ended on September 30, 2017.

Consolidated revenue for the third quarter was $3.1 billion, up 5% versus the prior year period. Total segment revenue was $1.9 billion for the quarter, up 5% versus the prior year period, or up 3% on an organic constant currency basis.

Net income attributable to First Data for the third quarter of 2017 was $296 million, or $0.31 per diluted share, up 124% and 121%, respectively, from third quarter of 2016 comparable figures. The increase in net income attributable to First Data was driven by a significant discrete tax item in the current period (see "Income Tax (Benefit) / Expense," below), improved operating results and lower interest expense.

Total segment earnings before interest, taxes, depreciation, and amortization (total segment EBITDA) in the third quarter 2017 was $787 million, up 6% versus the prior year period, or up 5% on an organic constant currency basis.

“During the quarter we saw solid results in our GFS and NSS segments with strong performances across all of our international businesses,” said First Data Chairman and CEO Frank Bisignano.

“We continue to make significant progress in establishing First Data as a major player in the ISV market, driven by the addition of CardConnect’s cutting-edge ISV product suite and the highly complementary acquisition of BluePay, which brings to us innovative Card-Not-Present integrated solutions,” Bisignano added.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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