First Data Corp. is working with Yahoo Inc. to provide small- and midsize merchants with e-commerce capabilities, according to the Atlanta-based processor. Under an agreement between the companies announced today, First Data will provide merchants with point-of-sale equipment and payment-processing services, and Yahoo will provide Web-based products that will enable small businesses to create online stores. "In our market research and conversations with our customers, it became apparent that many merchants don't have a Web presence," says Souheil Badran, First Data senior vice president and division manager for e-commerce. The agreement will provide "e-commerce solutions for small and midsize merchants who wish to extend their businesses to the Internet." First Data serves more than 5.3 million merchant locations and Yahoo reaches more than 50% of small businesses online, Badran tells CardLine sister publication ISO&Agent Weekly.