Westpac, Keycorp agree innovative EFTPOS deal
(11 May 2004 – Australia) Westpac has inked a five year, A$100 million deal with Keycorp to supply EFTPOS terminal services throughout Australia.
Keycorp will purchase Westpac’s entire fleet of 72,000 terminals and lease them back to the bank’s customers. The company will then manage, upgrade and support the network.
Westpac general manager, Products and Payments, Sally Herman, said the agreement should result in cost savings of five percent as well as an updated fleet.
In an interview with ASX interview service corporatefile.com.au, Keycorp chief executive Bruce Thompson said the arrangement was "quite novel" by Australian standards.
"Under the agreement, we’ll buy Westpac’s current fleet, and we’ll entirely replace it with our K23 terminals, and for wireless applications our K78s, over the five year period," he said.
"But Westpac’s also outsourcing a large portion of its payment services operation to us. So we’ll own the fleet and provide it to the merchants for a monthly rental, and provide deployment services such as installation, deinstallation, repair and maintenance.
"We’ll basically be standing in the place of Westpac with respect to the provision and deployment of payment terminals to its merchants. We’re extremely well equipped to do that efficiently and cost-effectively," Thompson said.
Westpac general manager, Products and Payments, Sally Herman, said the agreement should result in cost savings of five percent as well as an updated fleet.
In an interview with ASX interview service corporatefile.com.au, Keycorp chief executive Bruce Thompson said the arrangement was "quite novel" by Australian standards.
"Under the agreement, we’ll buy Westpac’s current fleet, and we’ll entirely replace it with our K23 terminals, and for wireless applications our K78s, over the five year period," he said.
"But Westpac’s also outsourcing a large portion of its payment services operation to us. So we’ll own the fleet and provide it to the merchants for a monthly rental, and provide deployment services such as installation, deinstallation, repair and maintenance.
"We’ll basically be standing in the place of Westpac with respect to the provision and deployment of payment terminals to its merchants. We’re extremely well equipped to do that efficiently and cost-effectively," Thompson said.
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