TSYS' "Big Elephant": Six-Year Credit Card Processing Contract with BOA
TSYS will provide processing services for Bank of America's U.S. consumer credit card portfolio for at least six years, in addition to the processing it already does for BOA's corporate cards, a release says. TSYS will convert Bank of America's consumer cards over from an in-house processing system to its own platform by mid-2014.
In completing the deal, TSYS has "bagged a big elephant," says Jefferies analyst Jason Kupferberg. "We believe this win will have a material benefit on profit, though it is premature to accurately size the impact," the analyst wrote in a note to clients obtained by Reuters.
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