Card Processing: PayLife’s Migration to SIX Completed
- PayLife (former Europay Austria) has completed the migration of its issuing (for debit cards) and all acquiring processing to processor SIX Card Solutions. Based in Luxembourg, SIX relies on its parent platform in Switzerland. PayLife, the main Austrian issuer and acquirer, had selected SIX in 2008 to replace First Data as its processor.
- In details, cash withdrawals at 7,600 ATMs have been handled by SIX since March 2011. It also has also been processing 65,000 POS terminals since May, and the eight million Maestro debit cards issued since October. An overall workload of 180 person-years has been necessary to adapt SIX’ processes to the specific requirements of Austrian payments.
- The previous national card processor APSS, sold in 2005 to First Data, used to be in charge of all issuing, acquiring and interbank processing for all MasterCard brands. Not long before, Austria had converted its national card scheme Bankomat to Maestro. To complete the unbundling of governance and operational activities, Europay Austria’s issuing and acquiring have been transferred to a new financial institution, PayLife, thus achieving compliance with the SEPA Cards Framework (SCF).
- The intended design had been altered when First Data Austria launched its own merchant acquiring service offer, “First POS”. As the Austrian banks saw their processing supplier becoming a rival in the acquiring business, they put an end to their contract with the US processor. Instead, they entrusted SiNSYS (subsidiary of Italian processor SIA) with debit card processing, and the processing of all the rest with SIX. They have thus managed to mitigate the competition risk. Meanwhile, First Data has closed business in Austria.