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Royal Bank of Scotland signs First Data for merchant services in UK

First Data Corp. announced an agreement with Royal Bank of Scotland Group to provide merchant services, including its Clover point-of-sale smart terminal platform, to the lender's business customers in the U.K.

The agreement calls for the services to begin in 2019, as First Data will replace RBS's current supplier. As part of the agreement, First Data will also provide services including its payments acceptance gateway and it global multi-currency processing platform.

Worldpay Inc., in an 8-K filing with the U.S. Securities and Exchange Commission, disclosed the deal to end its referral agreement between its Worldpay U.K. Ltd. subsidiary and RBS in 2019. Under the agreement RBS "exclusively refers potential clients to Worldpay U.K." and the unit sells merchant acquiring and related services to those clients.

Worldpay said it operates multiple referral-based distribution channels in the U.K. and internationally and noted that the end of the agreement would not have a material impact on its earnings. In 2017, RBS referrals generated about $4.8 million in annualized revenue from new sales, or 0.1 percent of Worldpay's annual revenue, according to the filing.  

The disclosure came just two days after First Data announced plans to launch its Clover POS platform in Canada. Clover is a cloud-based system that allows merchants to accept various types of traditional and contactless payment systems while providing customer loyalty and critical data in various formats.

According to First Data, it provides financial technology to more than 4,000 financial institutions and six million businesses worldwide.