ZashPop? Fiserv Acquires CashEdge for $465 M

China C.bank Says It Will Steadily Push Forward Digital Yuan Pilots

China C.bank Says It Will Steadily Push Forward Digital Yuan Pilots

Fiserv’s acquisitive streak has seemingly been rekindled with the announcement yesterday that the financial services technology behemoth will acquire privately-held person-to-person payment platform CashEdge for $465 million in cash. The acquisition extends Fiserv’s reach considerably as a P2P provider in the large bank space, since CashEdge had significant relationships with at least three of the Big four largest banks in the U.S. and several other large financial institutions, which generated $64 billion in transaction volume in 2010. Fiserv has gained some recent traction with its own P2P platform ZashPay, announcing a deal with Visa in March – in tandem with CashEdge – to extend the network to Visa cardholders.

Finextra has this brief:

The two firms have been competing in the fast-growing P2P payments market, signing up hundreds of financial institutions to their respective products – Fiserv’s ZashPay and CashEdge’s Popmoney – over the last couple of years.

Fiserv says the acquisition of CashEdge – which employs around 300 people in New York, Silicon Valley, Chennai and Mumbai – should help it provide new capabilities such as P2P money request, and small business electronic invoicing and remittance to its customers.

Jeffery Yabuki, CEO, Fiserv, says: “CashEdge brings a strong and knowledgeable team that has a well-deserved reputation for innovative product development and delivery excellence. Importantly, we share a common vision for new payment solutions enabled by a financial institution-centric platform.”

The transaction is slated to close by September, subject to regulatory approvals and customary closing conditions. Fiserv expects it to be neutral to adjusted earnings per share in 2011 and accretive in 2012.

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