Michael P. Duffy, who helped make JPMorgan (JPM) Chase & Co. one of the largest U.S. processors of credit-card and electronic payments as head of its Dallas-based Chase Paymentech unit, has died. He was 54.
Duffy “was a brilliant leader, pioneer in the payment industry and fierce competitor,” Gordon Smith, chief executive officer of consumer and community banking at JPMorgan, said March 8 in a message to employees. “His passion and tenacity was exemplified in so many aspects of his life, from his battles against personal illness to how he led his team and established Paymentech as a global industry leader.”
With 25 years in the payments industry, Duffy was early in recognizing the potential growth for processing online transactions, according to a biography provided by JPMorgan. He established for the bank exclusive processing agreements with PayPal and BillMeLater, now owned by San Jose, California-based EBay Inc.
“He was very much an innovator and was at the forefront of early e-commerce in the mid-1990s,” Rick Oglesby, an industry analyst at Aite Group LLC in Boston, said in an interview.
Chase Paymentech processed 29.5 billion online transactions worth $655.2 billion, or half the industry's total last year, according to JPMorgan. The bank ranks No. 3 in the U.S. among payments processors after Bank of America Corp. and First Data Corp., and ranks No. 4 globally, according to the Nilson Report, a Carpinteria, California-based industry newsletter.
Beyond JPMorgan, Duffy provided leadership on security issues concerning electronic commerce. For three years he served on the board of the Merchant Risk Council, a Seattle-based trade group.
“Mike was a giant in the industry,” Tom Donlea, managing director of the council, said in an interview. “He chose his words carefully and when he weighed in, everybody paid attention.”
Michael Patrick Duffy, a Dallas native, was born on Feb. 26, 1959, according to a notice on the website of Sparkman/Hillcrest Funeral Home in Dallas. He earned a bachelor’s degree in economics from the State University of New York at Albany and a master’s in business administration from the University of St. Thomas in Houston.
Early in his career Duffy held leadership roles with Equifax Credit Information Services and Equifax Credit Bureau Marketing, according to the bio provided by JPMorgan. He joined Litle & Co., a credit-card processor for “card-not-present transactions,” becoming chief financial officer. That company was acquired by Paymentech in 1995, where he rose to chief operating officer and then president and CEO.
JPMorgan, through a predecessor, Bank One, formed a joint venture with Paymentech in 1997, and in 2008 the payments processor became a unit of the bank, according to its website.
Dan Charron, who worked with Duffy for 13 years and assumed some of his duties while he was ill, will become acting head of Paymentech, Smith said.