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Table of Contents
Transaction and processing service fees revenue grew 2% in 2014 compared to 2013 led by 8% growth in our EMEA region. EMEA
growth was driven by growth in our merchant acquiring alliances business. Our North America segment growth was driven by net pricing increases
resulting in an increase of approximately $20 million for regional merchants, and network routing incentives. In 2014. the U.S. dollar significantly
strengthened in comparison to most major currencies negatively impacting revenue growth in our international regions.
North America transaction growth in 2014 compared to 2013 was driven by growth in our national and ISO merchants. partially offset
by lost business at Walman as they shifted from using us as their sole processor to a dual processor strategy in the just quarter of 2014. The
Walmart shift resulted in a revenue decline of $16 million compared to the prior year. This decline was partially offset by volume growth from
other clients. International transaction growth in 2014 compared to 2013 outpaced revenue growth due to changes in transaction mix and the impact
of foreign currency exchange rate movements.
Transaction and processing service fees revenue increased 3% in 2013 compared to 2012 led by growth in our North America and
EMEA regions. North America growth was driven by volume growth of approximately $15 million, net pricing increases rmIting in an increase of
approximately $15 million and network routing incentives of approximately $30 million. Revenue growth was particularly strong in our EMEA
region, which accounted for approximately 509/0 of segment growth. Growth in our EMEA region was driven by volume growth. particularly in
merchant acquiring alliances as well as direct sales channels in Ireland. the United Kingdom. and Poland. In addition, revenue in our APAC region
decreased compared to 2012 due to lower ATM volumes in Australia. In 2013, the U.S. dollar strengthened in comparison to most major currencies
negatively impacting our 2013 revenue growth.
International transaction growth in 2013 compared to 2012 outpaced revenue growth due to changes in transaction mix and the impact
of foreign currency exchange rate movements.
Total product sales and other revenue
The following table displays total product sales and other revenue by segment region and illustrates, on a percentage basis, the impact of
foreign currency fluctuations on revenue growth.
Year ended December31.
Percent Change
Constant Currency
Percent Change
2014 vs.
2013 vs.
2014 vs.
2013 is.
(In millions)
2014
2013
2012
2013
2012
2013
2012
North America
$ 546
$ 500
$ 542
9%
(8)%
9%
(8)96
EMEA
165
147
141
12%
4%
11%
3%
APAC
3
4
6
(25)36
(33)%
(23)%
(32)%
1,ATAM
52
58
55
(10)%
5%
31%
25%
Total product sales and other revenue
$ 766
$ 709
$ 744
8%
(5)96
11%
(4)%
Product sales and other revenue increased 8% in 2014 compared to 2013 due to the impact of a $12 million sale of a merchant portfolio
in Poland during the fourth quarter of 2014, portfolio growth in the leasing business of $15 million, including interest income and fees on terminal
leases, and $25 million growth in software sales. In 2014, foreign currency exchange rate movements negatively impacted the growth rate for
product sales and other revenue in 2014 compared to 2013.
Product sales and other revenue decreased 5% in 2013 compared to 2012 due to a decline in terminal sales of $18 million, including
lower bulk sales, as well as a $25 million decline in software sales, partially offset by $12 million of growth in professional services revenue
resulting from new projects.
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