eCommerce & Data Driving More Than One Payments Merger

Monday, April 8th, 2019

The payments industry is rapidly moving into digital transactions. Given the industry is working on cutting costs and expanding its offerings, consolidation is something to expect soon. Fidelity National Information Services (FIS) is a vivid example of that, announcing a $35 billion deal to acquire Worldpay. To know more about the payments merger and find the best payments services, just read below.

Modern Retail Space

According to the cash and stock deal, UK-based Worldpay is valued at $43 billion. This includes the assumption of debt that FIS is going to refinance.

Ian McDonald, a research analyst at London-based firm Janus Henderson Investors, notes that the retail industry digitizing with rapid advances. Increasingly a larger and larger slice of the consumer wallet is going to eCommerce.

As a result, businesses can now generate much more data as compared to what can be gathered for getting insight into consumer behavior. Such information is gaining more and more value for combating fraud as well. Overall, the data that payments generate has an incredibly important potential for business intelligence.

Lisa Ellis, an analyst at MoffettNathanson, says that the mega-mergers among payment processors make investors wonder why this is happening. Who will be the next? Ellis further notes that there’s nothing complicated about the “why” behind the latest mergers. Namely, Fiserv Inc.’s $22 billion purchase of First Data Corp and Fidelity National Information Services Inc.’s $43 billion acquisition of WorldPay Inc.

Today, the rapid eCommerce growth, payments digitization in Europe, Latin America and Asia, and consumer demand for capabilities such as “order ahead” are creating more favorable terms for such deals.

By the way, JPMorgan Chase & Co. might view Global Payments as a “solid strategic fit” as well. On the other hand, the payments company could work well with the new Fiserv-FDC or maybe even Square Inc. or Stripe Inc.

Payments Merger & Merchant Services UK

In the current situation, you can see firms falling under 2 large groups, according to McDonald. In the 1st group, you can find processing entities trying to gain economies of scale and better their data analytics. In the 2nd one, you can find companies like PayPal Holdings Inc. and Square Inc. that’re seeking to enlarge their software capabilities. The latter capabilities are specifically about helping businesses better their front- and back-office efficiencies.

With all this in mind, working with a reputable payments expert like Best Payment Providers is a must if you want to get the right payment processing solutions for your company. Best Payment Providers can help you get the best out of any type of payments merger that you can come across in the industry.

Best Payment Providers is dedicated to helping merchants find the best payment processing services in the UK so to fight the competition easily. Best Payment Providers is a trustworthy payments comparison company that can help you find the most competitive pricing and avoid any hidden extras in the field.

So, with Best Payment Providers, you can be sure to enjoy one-of-a-kind review of contracts, rates, and fees, as well as get the most honest snapshot of companies at the time of writing. What’s more, Best Payment Providers never fails to check the payment companies’ integration process so to ensure you’re enjoying smooth transition and onboarding process. Finally, consultation and advice are free.