Last month, it was announced that Fidelity National Information Services Inc. (FIS) had agreed to buy Worldpay for about $35 billion. The U.S. financial services provider striking this deal marks the biggest one to date in the fast-growing electronic payments industry. As new and promising start-ups continue to pour into the industry, the financial technology
Last month, it was announced that Fidelity National Information Services Inc. (FIS) had agreed to buy Worldpay for about $35 billion. The U.S. financial services provider striking this deal marks the biggest one to date in the fast-growing electronic payments industry.
As new and promising start-ups continue to pour into the industry, the financial technology sector is working to consolidate – and fast. The global payments industry is set to reach $3 trillion in revenue by 2023, according to consulting firm McKinsey. The firm explains that this rapid growth is due to more and more people switching from cash to digital payments for both online and high street sales.
The FIS deal values Worldpay at about $43 billion, including debt. This deal comes just a little over a year after U.S. firm Vantiv paid $10.63 billion for the payments firm. Combined, FIS and Worldpay will have annual revenue of about $12 billion, and adjusted core earnings of about $5 billion.
“Parking the two companies together gives the enlarged business a very strong position by which to play the structural growth in digital payments. They will be able to provide clients a wider portfolio of services,” says Russ Mould, investment director.
Worldpay is a major player in card payments, especially in Britain. FIS specialises in producing software for banks, asset managers and financial services that outsource business.
“For FIS buying Worldpay means expanding beyond the world of financial outsourcing and tapping into payment processing and e-commerce”, explains a source.
According to companies, this deal will result in an organic revenue growth outlook of 6 to 9 percent through 2021, along with $700 million of total core earnings savings over three years.
Keeping Up with the Industry
For start-ups, it can be hard to keep up with ever-changing trends and the power of big, established companies consolidating. One of the easiest ways to distinguish themselves is to turn to their customers and provide the best payment processing services available. This shift in focus can very quickly give a business a competitive advantage.
If your business needs more information on the best UK merchant services available, like fidelity payments, consider Best Payment Providers. Browse through a long list of helpful reviews and tips to help you choose the right provider for your business.
Author Bio:Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry and fidelity payments has helped thousands of business owners save money and time.