First American Payment Systems, L.P.

First American Payment Systems, L. P. is a Texas-based payment processing company founded in 1990, specializing in merchant account services for businesses across various sectors, enabling efficient credit card transactions and cash flow management. First American Payment Systems, L.

P. provides payment processing solutions to businesses. Founded in Fort Worth, Texas, by Jorge Fernandez, the company has pivoted its focus on enhancing payment technologies. In April 2021, the company underwent a significant change when Deluxe Corporation acquired it for USD 960 mn.

Since its inception, First American has successfully completed six deals, reflecting its growth trajectory in the payment processing industry. First American Payment Systems, L. P. specializes in providing comprehensive merchant account services designed to facilitate payment processing for businesses across various sectors.

The company's core offerings focus on enabling businesses to accept credit card payments, thereby optimizing transaction efficiency and enhancing cash flow management. These services include payment integration solutions that allow software developers to seamlessly incorporate payment technology into their existing products, catering primarily to software companies looking to expand their service capabilities. Additionally, First American's offerings extend to diverse clientele, including small to mid-sized businesses in industries such as retail, e-commerce, and hospitality. The company operates in multiple geographical markets, including the United States and select regions of North America, thereby serving a broad array of end users seeking reliable and secure payment processing solutions.

First American Payment Systems generates revenue primarily through transaction-based fees associated with its merchant services. The structure of these transactions typically involves businesses paying a percentage of each transaction processed, along with additional fees for specific services such as payment integration and account management. Clients, including retailers and service providers, often enter into partnerships that encompass subscriptions for ongoing services, thereby ensuring a steady revenue stream for First American. The revenue model is structured to reflect the value provided through its flagship offerings, which simplify the payment acceptance process for businesses while enhancing their operational capabilities.

The company's EBITDA for the most recent year, 2003, was USD 90 mn. Following its acquisition by Deluxe Corporation in April 2021 for USD 960 mn, First American Payment Systems aims to leverage the new resources and expertise to enhance its product offerings. The company is focusing on developing new payment integration tools and expanding into additional North American markets. The acquisition will provide the necessary capital and strategic support to accelerate these initiatives.

As First American aligns its growth strategy with Deluxe, it anticipates launching new products throughout 2022, aimed at simplifying payment processes for its diverse clientele.