The companies will focus on building e-commerce and business management solutions for merchants as well as improving access to the banking system.
First Data and Bancolombia say they will bring the “latest payments innovations” from Europe and the U.S. to the Colombian market.
Colombia is not new to First Data as it first entered the market in 2009.
Gustavo Marín, executive vice-president of First Data for Latin America, says Colombia represents “huge potential for our company given that the use of debit and credit cards still has relatively low penetration”.
In the Caribbean and Latin America, First Data has operations in eight countries, serving clients in 32 countries across the region. In Brazil, it says 60% of all credit card transactions are processed on its software platforms.
First Data has been involved in four other notable deals.
Dutch state-owned bank, ABN Amro, partnered with First Data for payments and will offer services through its joint venture European Merchant Services (EMS).
First Data teamed with SAP for a new B2B payments system, AribaPay, designed to make the procure-to-pay process quicker using a cloud-based model across a business network.
While in 2015, Saxo Payments announced it was collaborating with First Data to reduce costs and improve the speed of global transactions for First Data clients through a secure web interface to manage cross border transfers.
Technology consultancy Capgemini formed a global alliance with First Data to develop payment software based on First Data’s VisionPlus and AccessPlus solutions.