Another Mega-Deal for Payments

A few weeks ago, Fiserv (FISV) agreed to buy First Data in a mega-deal. Whenever you see a big deal in an industry, you often see the other players strike back. Today, FIS said it’s going to buy Worldpay for $34 billion.

The industry is now at the heart of a dealmaking boom as consumers change the way they pay for goods and legacy providers are challenged by rivals from startups to Apple Pay. Industrywide revenue is projected to surge to $2.4 trillion by 2027, according to a report from Boston Consulting Group and Swift.

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Payments companies earn fees from charging to service the billions of dollars of purchases made by consumers and businesses, and many have been turning to deals to grab market share. The rise of contactless payments, and the need to update back-end infrastructure, also have spurred mergers.

We’re not done yet. Expect to see more deals ahead. There are also IPOs coming onboard. This is good news for Fiserv.

Posted by on March 18th, 2019 at 8:36 am


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