North American Bancard’s acquisition of Electronic Payment Exchange, or EPX — a full-service payment transaction processor that operates its own card authorization, clearing, and settlement platforms — has the potential to save the company tens of millions of dollars each year, says Marc Gardner, founder, president, and CEO of the Troy-based firm.
“I see EPX as a hidden jewel,” Gardner says. “Acquiring the technology to bring processing in-house is a significant opportunity for this organization. Not only is there potential for an eight figure annual cost savings but this move also brings us the ability to further expand EPX’s card acceptance platform in Latin America and Europe where they enjoy extensive processing relationships today.”
EPX has built a portfolio that exceeds $18 billion in annual processing volume, while North American Bancard processes more than $16 billion in electronic transactions annually.
Gardner says the additional vertical integration that comes with being an end-to-end processor will allow North American Bancard to significantly reduce its operating costs, decrease its dependence on third-party partners, and gain market share.
Additionally, Gardner says, by owning the process from origination all the way through settlement of interchange, North American Bancard has more flexibility in tailoring solutions to fit an array of customer needs.
The transaction comes on the heels of North American Bancard’s recent launch of PayAnywhere Storefront, the industry’s first-cloud based tablet point-of-sale solution that is provided free to merchants with activation.
