Payment processor Total System Services Inc. (TSYS) has announced its plan to purchase NetSpend Holdings Inc. in a 1.4 billion dollar deal.

The move reflects the commitment of TSYS to expanding its presence in the prepaid card market, which has long been since dominated by large entities such as US Bankcorp and JP Morgan Chase & Co.

TSYS agreed to pay 16 dollars per share of NetSpend, a debit card provider, and expects boost in its revenue in 2013 after the complete acquisition, despite the debate on whether or not the latter has the ability to maintain good earnings.

In a regulatory filing, TSYS made it clear that NetSpend chief executive officer Dan Henry will remain responsible for managing the company which will still operate as an independent business