Keycorp in $14.4m services deal with Bank of Queensland

Stan Beer
Wednesday, 26 July 2006 18:17

IT Industry - Deals

Secure electronic transaction solutions provider Keycorp Limited (ASX: KYC) has signed an agreement to provide managed payment services for the Bank of Queensland’s entire fleet of EFTPOS terminals.

Under the six-year agreement, Keycorp will acquire all of Bank of Queensland’s EFTPOS terminals currently serving the bank’s merchant customers around Australia. The existing devices will be replaced with new EFTPOS terminals and software which the company will manage and support, allowing Bank of Queensland to focus on its core banking business.

Keycorp will support the growth of the bank’s network of branches and work with Bank of Queensland to expand the range of payments products and services available to its merchant customers throughout Australia. 

The agreement is expected to generate $14.4 million in annuity revenue for Keycorp over six years.  It is the second major managed payment services contract for Keycorp and follows the $100 million five-year managed terminal agreement with Westpac announced in mid-2004.

Keycorp CEO, Bruce Thompson, said companies such as Bank of Queensland faced ongoing challenges managing a large fleet of payment terminals, which needed to be continually upgraded and made compliant with changing regulatory and technical requirements. An added challenge was keeping track of the terminals and ensuring they were secure.

“Keycorp has developed excellent terminal products, software solutions, processes and tools for compliance and asset management that are part of our core business,” Mr Thompson said. “By taking over the task of managing the Bank of Queensland’s terminals, Keycorp can allow the bank to concentrate on what it does best – serve its banking customers.”

Bank of Queensland Managing Director, David Liddy, said the bank was expanding throughout Australia and needed a modern merchant terminal fleet which met the needs of customers, and supported the national expansion.

“Our agreement with Keycorp  is another example of Bank of Queensland’s desire to focus on the sharp end, the customer service end, while also providing for future growth opportunities in both revenue and customer numbers,” Mr Liddy said.

“It also provides Bank of Queensland with state-of-the-art merchant terminals for our existing merchant customers while laying the platform for future growth.

“Importantly, Bank of Queensland’s merchant terminals will now have the technological base to offer innovative customer offerings in the future.  They are another weapon in our arsenal for providing exceptional service to Australia’s small and medium businesses,” he said.