Total System Boosts Merchant Portfolio - Analyst Blog

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In an attempt to expand its merchant acquiring services, Total System Services Inc. ( TSS ) extended its alliance with MainStream Merchant Services. The latter is the leading payment processor, armed with annual credit transactions worth $1.0 billion.

Accordingly, the strategic association entails Total System to manage MainStream Merchant Services' card portfolio by providing a wide array of services. These include authentication, authorization, clearing and settlement services along with the sponsorship of bank identification number.

The alliance blends well with Total System's integrated merchant acquiring platform that offers a high-class customer experience through its upgraded technology and point-of-sale authorization capacities. Moreover, the renewed contract will continue to enhance Total System's payment volumes and a number of processed transactions, thereby supporting its financials.


Total System has been strengthening its clientele by offering customized and flexible processing solutions to all its partners, primarily in the merchant acquiring space. Furthermore, the company continues to explore new market opportunities while retaining the older ones. So far in 2013, the company hasbolstered its contract portfolio through attainment of processing contracts from KeyBank, LINK, Nationwide Building Society, Qatar National Bank, KBC Bank Ireland and Payment Alliance International, among others.

Meanwhile, Total System faces headwinds from strong competition, currency and interest rate fluctuations and stringent regulatory reforms. These factors have disturbed pricing, credit allocation and business model of the company. Hence, we believe such inorganic growth strategies bode well for Total System's long-term growth, the fruits of which are likely to be reflected in the financial results of the upcoming quarters.

While Total System carries a Zacks Rank #3 (Hold), other strong performers in the financial sector include Fiserv Inc. ( FISV ), Xoom Corp. ( XOOM ) and Visa Inc. ( V ). All these stocks carry a Zacks Rank #2 (Buy).



FISERV INC (FISV): Free Stock Analysis Report

TOTAL SYS SVC (TSS): Free Stock Analysis Report

VISA INC-A (V): Free Stock Analysis Report

XOOM CORP (XOOM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: FISV , TSS , V , XOOM

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