Payments News

Fiserv’s Big Bite

Mar 01, 2019

Its $22-billion megamerger agreement with First Data sets it up to be a dominant player on both the bank and merchant sides of payments. How will the industry react?

Executives at Fiserv Inc. all but popped champagne corks on Feb. 7 when they spoke to industry analysts about the Brookfield, Wis.-based company’s financial results. It had been about three weeks since Fiserv stunned the payments business with its $22-billion all-stock offer to buy First Data Corp., the big merchant and card-issuer processor, and its officials were finding the firm’s banking clients in a welcoming mood.

Since the Jan. 16 announcement, said chief executive Jeff Yabuki, “We’ve spent a substantial majority of our time talking to clients, and [their] reactions have been incredibly positive.” In fact, he told the analysts, “the feedback has been probably more positive than I would have thought.”

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