Wednesday, May 05, 1999
Midwest Payment Systems lands supermarket account
BY JEFF McKINNEY
The Cincinnati Enquirer
Midwest Payment Systems Inc. (MPS) has signed a deal that will boost its annual transaction volume by 15 million and add up to $7.5 million to its parent company's revenue.
MPS, the data processing arm of Cincinnati-based Fifth Third Bancorp, won a five-year agreement to provide debit-card processing services to Giant Eagle supermarkets. The Pittsburgh-based chain operates 201 stores in Pennsylvania, Ohio and West Virginia.
The deal could bring $3 million to $7.5 million in fee income to MPS.
Though hardly noticeable to the public, MPS is a key reason Fifth Third is regarded as one of the nation's most-profitable and cost-efficient banks.
Banking analysts value MPS because most banks don't have their own data-processing units. The processing business helps the bank keep operating costs down as well as generate revenue by selling its services to other financial providers and businesses.
MPS processes almost 3 billion automated-teller-machine and point-of-sale transactions a year for more than 55,000 stores and financial companies, including Federated Department Stores, Kroger and CompUSA.
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Midwest Payment Systems lands supermarket account
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