Total System Services Inc.
) executed a couple of business developments early this week to
strengthen its merchant acquiring services portfolio. However,
markets remained indifferent toward these moves, as shares dipped
about 0.1% to $30.58 on Thursday.
Firstly, Total System announced an extension of its alliance
with Europe's leading KBC Bank Ireland (KBC). This Irish bank is
operational for over 40 years now, offering commercial and personal
retail banking services to customers across Europe, Southeast Asia
and the U.S.
Last year, Total System had allied with KBC to process its debit
card portfolio, which was launched in 2013 and acknowledged as one
of the best bank cards in the industry. Further, KBC introduced
credit cards in Mar 2014, which will also be processed by Total
Alongside, Total System protracted its partnership with Canadian
Tire Financial Services to process its cards portfolio and offer
other related value-added services. Subsequently, the company will
support KBC and Canadian Tire's card portfolios with its enhanced
customer service to handle dispute and chargebacks as well as
monitor fraud and strategy management.
These multi-year contracts blend well with Total System's
integrated merchant acquiring platform, which provides high-class
customer experience through its advanced 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 catering
to its clientele more effectively 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. 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.
Total System presently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the financial services sector include
Euronet Worldwide Inc.
Global Cash Access Holdings Inc.
). All these stocks have a Zacks Rank #2 (Buy).
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