) recently announced that its Popmoney person-to-person payment
service has been incorporated with mobile banking and payments
platform, Mobiliti. The integration of the services will enable
users to make person-to-person payment directly from their mobile
According to a study by McKinsey & Company, over 16
billion person-to-person payments are being made every year and
majority of them are through cash and checks. The study also
reflected that electronic payment is emerging as a popular
platform for transferring money.
One of the primary reasons behind the platform's popularity is
the rapid adoption of smartphones and tablets. According to a
report from Forrester, 51% of tablet banking users and 46% of
mobile banking users were in support of person-to-person payments
to be enabled from their devices.
This huge demand has prompted financial institutions such as
Fiserv to adopt technology that offer both banking and payment
options from a central hub. In the recently ended fourth quarter,
Fiserv signed 134 Mobiliti clients and 113 Popmoney clients,
which reflected strong demand for its services.
In such a scenario, the integration between the two platforms
will facilitate users to manage their mobile banking and payment
options from a single platform. We believe that this will further
boost Fiserv's user base going forward.
Fiserv has been expanding its foothold in the financial and
payment solutions business through its diversified product
portfolio and continued technology upgrades. The company's
advanced product ranges are likely to further enhance its revenue
streams. Moreover, the company's various contract wins have
enabled Fiserv to expand its presence in the industry.
Additionally, Fiserv has a loyal and broad customer base. In
the recently concluded fourth quarter of 2012, Fiserv extended
its electronic payment and presentment relationship with
Bank of America
) for another 10-year term. Fiserv signed 113 electronic bill
payment clients and 40 debit processing clients in the quarter,
which include power generation company
American Electric Power
) and healthcare provider
However, volatile macroeconomic environment, banking and
financial service consolidation, poor cash flow, tough
competition and increasing industry regulations are the primary
concerns in the near term.
Currently, Fiserv has a Zacks Rank #2 (Buy).
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