Following a significant period of consolidation within fintech, Global Payments is looking for efficiencies by focusing on its B2B sector and seeking to offload the consumer portions of its Netspend prepaid card division. Netspend was acquired by TSYS prior to the merger of TSYS and Global Payments in 2019. The move provides strategic clarity for Global Payments as highlighted in Barron’s.
Jeff Sloan, Global Payments’ CEO, said the company is seeking to refine its portfolio and focus on its core corporate customers, which include merchants, financial institutions, software partners, and technology leaders. “As part of that initiative, we have commenced a strategic review of our Netspend consumer business to sharpen our focus on our B2B assets,” he said in prepared remarks. The consumer business has a favorable profile, but its customer base doesn’t overlap much with Global Payments’ traditional clients, he said.
Netspend operates within Global Payments’ business and consumer solutions department, which reported flat operating income results for 4th quarter 2021 as compared to growth of 14.7% across the entire organization. The move could also be a harbinger of additional moves in the industry, with Barron’s also reporting that NCR is considering strategic changes to benefit shareholder return.
Overview by Jordan Hirschfield, Director of Research at Mercator Advisory Group