Earlier this week,
) entered into a partnership agreement with Earthport. This was
done with the clear intent of ameliorating the automated clearing
house (ACH) by introducing international payment solutions for its
Fiserv's PEP+ ACH mainframe shall now be enhanced by Earthport's
advanced solutions which would not only escalate productivity
levels but also cater to providing a seamlessly flexible,
user-friendly and inexpensive payment processing platform for its
customers. The secure cross-border payments solution shall now be
accessible globally across over 50 countries.
Management gladly expressed its exuberance on this momentous
occasion by stating that it has finally been able to meet the
demand for providing cross border ACH payment solutions
internationally with this partnership. Apart from market share
proliferation, the venture shall be bolstered by the globalization
trends of the world economy.
We believe that the current Earthport integration shall be
lucidly profitable for Fiserv, primarily because Earthport holds a
reputation of providing state-of-the-art payment service solutions.
Furthermore, in 2011, nearly 50% of U.S. ACH transactions were made
using the Fiserv platform, hence this is a niche segment for the
company and such advancements would only burgeon demands for the
company in the ACH market.
Fiserv appears to be in quite a formidable position to battle
ominous competition in the industry with this partnership. Big
players to remain wary of, however, include
Heartland Payment Systems, Inc.
Alliance Data Systems Corporation
The company currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We also maintain a long-term Neutral
recommendation on the stock.
ALLIANCE DATA (ADS): Free Stock Analysis Report
ENVESTNET INC (ENV): Free Stock Analysis Report
FISERV INC (FISV): Free Stock Analysis Report
HEARTLAND PAYMT (HPY): Free Stock Analysis
To read this article on Zacks.com click here.