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ALLIANCE DATA SYSTEMS CORP. Dallas, Texas Transactions Processor Eyes New Strategy Its Focus Shifts To Marketing Servicing existing clients isn't enough, officials say; you have to win new ones.(THE NEW AMERICA)
Byline: KIRK SHINKLE
Alliance Data Systems Corp. is a bit of an upstart in the transaction services world.
The company just went public in June. It's spent the past year trying to get noticed in a field dominated by big names such as First Data Corp. and fast growers like Concord EFS Inc.
But Alliance wants to gain ground on larger rivals by growing market share and focusing on transforming what is essentially a service business into a new tool for marketing.
The firm deals in store-sponsored credit cards. It's behind the scenes when customers swipe their cards at retailers such as Ann Taylor and Pottery Barn.
It's a niche business in the world of Visa and MasterCard, but more companies are coming to rely on systems like Alliance's to handle payments and, more important, gather data for marketing.
Retailers and others are starting to look for more than just a back-end firm to handle the financial end of their credit card sales, says Alliance Chief Executive Mike Parks.
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