Recently,
Fiserv, Inc.
(
FISV
) entered into a multi-year, sole provider contract with
AT&T, Inc.
(
T
). Per the agreement, the company will be engaged in providing its
CheckFree RXP walk-in bill payment solution to the Wireline clients
in 13 additional states. Now, with this contract, clients in 22
states will be able to avail of walk-in bill payment facility.
In addition, the company will also continue to provide its bill
payment services to AT&T's Long Distance, Mobility and U-verse
clientele across 48 states. These user-friendly solutions by Fiserv
would make the entire bill payment system much faster and secured
for AT&T's clients. They can now easily pay Wireline, Long
Distance, Mobility and U-verse bills to any CheckFreePay agent
through cash, checks or money orders.
This agreement has strengthened the company's long-term
association with AT&T. We believe Fiserv's advanced platform
would help AT&T to ameliorate its service standards and serve
its clients more effectively.
Various strategic contract wins hold future pledge for Fiserv.
The company recently confirmed winning contract from Intracoastal
Bank for providing its Premier bank solutions and other wide range
of banking services. We believe that these agreements are likely to
heighten the company's market share in future.
However, even with such moves, it is always wise for Fiserv to
be extra cautious of competitive strides in the industry. The
company's primary competitors include big players such as
Mastercard Incorporated
(
MA
),
Fidelity National Information Services, Inc. (
FIS
) and
Total System Services, Inc.
(
TSS
). Moreover, Fiserv faces an ongoing threat from billers and
self-sufficient financial institutions that develop and use their
own electronic payment transactions and Internet banking
solutions.
The current Zacks Consensus Estimates for Fiserv, Inc. are $1.27
and $5.19 for the third quarter of 2012 and for 2012, respectively.
The estimates represent a year-over-year growth of 9.82% for the
third quarter and 13.23% for 2012. We currently have a long-term
'Neutral' recommendation for Fiserv. The stock carries a Zacks #2
Rank, which translates into a short-term 'Buy' rating.
FIDELITY NAT IN (FIS): Free Stock Analysis
Report
FISERV INC (FISV): Free Stock Analysis Report
MASTERCARD INC (MA): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
TOTAL SYS SVC (TSS): Free Stock Analysis Report
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