Mercator Advisory Group Payments Industry M&A Report - Q2 2005


There were some major deals announced in the quarter including the $35 billion Bank Of America - MBNA mega deal.  The bank merger move that started in 2003 still continues.  The Bank Of America - MBNA and the Washington Mutual - Providian deals significantly change the competitive environment in U.S. consumer credit card markets, as well as the commercial card market.  

In the second quarter of 2005, 25 deals were caught in Mercator's radar screen.  The breakdown of these deals is as follows:

* Credit Card Issuers - 7 deals

* Processors - 3 deals

* Money Remittance Companies - 1 deal

* Vendors - 14 deals

"We see more consolidation in the U.S. credit card issuing, processing, and acquiring businesses.  Retailers continue to get out of the card issuing business by selling off their portfolios to private label card issuers.  Meanwhile, processors target international card markets, which are growing or poised to grow faster than the U.S. market.  And vendors buy companies that complement and enhance their existing portfolio of offerings as well as those that provide an additional customer base that they can cross sell to" commentsEvren Bayri, a Director in Mercator Advisory Group's Credit Advisory Service and author of this report.

The Payments Industry M&A Report - Q2 2005 provides comments and analysis on major deals announced within the second quarter of 2005, summary information on the payments industry related M&A deals, contact person(s) related to each deal, and an M&A activity table that summarizes the highlights of each deal.        


The report contains 44 pages and 9 Exhibits.

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