A joint venture between PHH Vehicle Management Services and First USA Paymentech was announced Wednesday to develop a new MasterCard Corporate Fleet Card. The new card product will offer a single card to be used for purchasing fuel, vehicle maintenance, food, lodging and other business related items. PHH manages the vehicles of nearly one-third of the Fortune 500 companies with nearly 500,000 vehicles in North America and Europe. PHH has more than one million fuel and service cards in use and processes over 50 million transactions annually.
PHH Vehicle Management Services, a subsidiary of PHH Corporation (NYSE: PHH), and First USA Paymentech, Inc. (NYSE:PTI) announced their intention to form a joint venture today that will, for the first time, deliver an integrated processing solution that provides a single card payment mechanism for fleet, purchasing, travel and entertainment needs.
This groundbreaking offering will create new and highly efficient expense management and data processing advantages for companies with mobile employees. It will streamline their payment processes and allow companies to manage complex information and reduce administrative costs.
The planned joint venture, to be called PHH/Paymentech, will offer the MasterCard-branded product early next year. “PHH and Paymentech have been instrumental in the development of the new full-service payment platform that will support the MasterCard Corporate Fleet Card,” said Steve Abrams, MasterCard International’s senior vice president for U.S. Corporate Products.
PHH/Paymentech will offer one card that can be used to purchase fuel, vehicle maintenance, food, lodging and other business related items. No longer will employees need to carry cash or a wallet full of credit cards for these expenses. It will also produce the sophisticated reporting necessary for broad-based cost management.
“PHH/Paymentech will deliver a powerful data management tool for companies that wish to offer employees greater convenience without losing effective financial controls,” said Pamela Patsley, president and CEO, First USA Paymentech. “This is consistent with Paymentech’s desire to provide our customers with payment solutions of unsurpassed value.”
“This new partnership underscores PHH’s long-standing commitment to provide organizations with innovative solutions for card transactions,” said Bill Adler, president of PHH Vehicle Management Services, a leading global vehicle management company. “We were industry leaders in helping companies manage fleet maintenance and fuel expenses when we introduced the PHH Service Card in 1972, and were the first to offer electronic point-of-sale capabilities for fleet cards. Now the combined broader purchasing power and processing capabilities of Paymentech and PHH allow us to offer high value, guaranteed card payment solutions and support our plans for further innovations for our fleet clients worldwide,” said Adler.
First USA Paymentech, Inc. (NYSE:PTI), founded in 1985, provides full-service electronic payment solutions, processing 264 million total transactions in the September 1996 quarter. As the third largest processor of bankcard transactions in the United States, Paymentech processed $33.9 billion in bankcard sales volume during the last four quarters. Paymentech also issues commercial card products to businesses and other entities, and provides commercial card payment and information processing.
PHH Vehicle Management Services, founded in 1946, is a leading global vehicle management company. It pioneered the development of vehicle fleet leasing, management and resale programs, as well as maintenance, repair and fuel purchasing, accident reporting, safety and cellular phone programs that provide value-added services to its clients and their business drivers. The company manages the vehicles of nearly one-third of the Fortune 500 companies, and its total fleet exceeds 483,000 vehicles across North America and Europe. In its latest fiscal year ended April 30, 1996, PHH purchased 118,000 vehicles, had 1,049,000 fuel and service cards in use, and processed over 50 million transactions. PHH Corporation is also the market leader in employee relocation, real estate and mortgage services for corporations, government agencies and affinity organizations.