U.S. Bank is expanding its prepaid card business with the acquisition of a Florida company.
According to The Star Tribune, the purchase of FSV Payment Services will allow U.S. Bank to double its prepaid card operations. It will also give the bank a valuable processing platform and allow the company to move into the area of payroll cards, which some employers use instead of checks.
“The prepaid market has been a strategic focus for our business over the last decade and we are pleased to expand our capabilities and offer a fuller suite of prepaid services,” said U.S. Bank’s Tony Vuoto. “FSV Payment Systems is one of the few integrated platforms developed specifically for the prepaid market and has the flexibility to serve our growing customer base.”
U.S. Bank says it will continue to grow its business across multiple prepaid market segments including corporate, consumer, government and campus. Some of the prepaid products that U.S. Bank offers include payroll, general purpose reloadable (GPR), government disbursements, gift, incentives, campus cards and prepaid reward cards.
The terms of the deal, which is expected to be completed in December, have not been released. Before it is final, it will have to gain regulatory approval.