PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

First Data Acquires CardConnect

Raymond Pucci by Raymond Pucci
June 2, 2017
in Analysts Coverage
0
Friendly Fraud Is Not Your Friend - PaymentsJournal

Business people shaking hands after meeting .

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

 In their second deal in two months, First Data is acquiring CardConnect, an integrated payment services provider that focuses on enterprise business solutions. As the following article reports, First Data looks to strengthen its value added services and technology applications.

As competition rises in the fintech space and the market becomes increasingly saturated with digital payment firms, the industry has shifted its focus from core payments processing technology to new value-add services

The remarks from the fintech CEO come as First Data, with more than $2.2 trillion in transactions a year, buys out integrated payment solutions company CardConnect for $750 million, or $15 per share. In acquiring the Pennsylvania-based business, First Data will enhance its integrated payment solutions, which link to companies’ enterprise resource planning (ERP) systems.

The acquisition could open up a new market for First Data, improve its cash management and expand its suite of client services. Bisignano says the transaction is “consistent with our strategy of integrating and scaling innovative technologies across our distribution footprint.”

The global card payment and ecommerce processing company has seen its shares gain about 36% in the most recent 12-month period, propelled by strength of its financial sector, ecommerce and credit card clients. Bisignano also added that the firm hopes it can provide some help to dying brick-and-mortar retailers.

This deal is part of continuing evolution of acquirers to diversify away from commodity type processing. So we’ll be seeing more of this across the payments industry. First Data has set up a potential trifecta here: 1) scaling up processing volume for cost efficiencies, 2) adding more integrated technology solutions and business tools to customers that bring higher margins, 3) further inroads into more enterprise scale relationships that are ideal for cross selling across First Data’s portfolio. A bonus is that CardConnect is already FD partner which will help smooth coordination issues and challenges that inevitably accompany any deal like this.

Overview by Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group

Read the full story here

Tags: Merchant AcquiringPartnerships
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    instant payments, real-time payments, RTP

    Banks Developing Instant Payments Products in the U.S. Should Focus on Billers to Generate New Revenue Streams  

    May 31, 2023
    Digital Wallet Use Delivers on Convenience and Security

    Digital Wallet Use Delivers on Convenience and Security

    May 30, 2023
    5 Ways to Protect Your Financial Institution from a Cyberattack

    5 Ways to Protect Your Financial Institution from a Cyberattack

    May 26, 2023
    traditional banks

    How Traditional Banks Can Modernize Without Risk

    May 25, 2023
    identity fraud

    Javelin’s Identity Fraud Study Highlights the Changing Nature of Fraud

    May 24, 2023
    SASE, security-as-a-service

    Security-as-a-Service Secures
    Distributed IT Models

    May 23, 2023
    mule. real-time

    Early Detection of Mule Activity Requires Real-Time Solutions

    May 22, 2023
    embedded finance, ecommerce

    How Retailers Can Enter the World of Embedded Finance Confidently 

    May 19, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download this complimentary report from Brightwell: