Markets

U.S. Bancorp Payment Arm Buys Electronic Transaction Systems

An image of a man at his desk working using two monitors
Credit: Shutterstock photo

U.S. Bancorp 's USB subsidiary, Elavon, recently acquired Electronic Transaction Systems Corporation (ETS) -- a Virginia-based financial technology company. The acquisition is likely to supplement Elavon's payment processing services. Financial terms of the deal remain undisclosed.

Electronic Transaction Systems, which operates in 23 countries, provides electronic processing services such as credit and debit card processing, POS check, electronic funds transfer (EFT) and ATM driving.

Elavon offers a variety of payment solutions to businesses ranging from e-commerce to mobile wallets and is recognized as a top global payment provider. Management is optimistic about the acquisition and considers Electronic Transaction Systems' business approach to be in line with the company's strategy. Further, this integration will make Elavon's electronic platform safer and simple to use.

Ed Vaughan, CEO of Electronic Transaction Systems, noted, "We are thrilled to join with Elavon and become part of U.S. Bank. We have worked with U.S. Bank for the 20 years that we've been growing our company. There was simply no better choice than U.S. Bank, who knows us and shares our vision for the future."

Of late, banks and financial institutions have entered into agreements with payment providers to enhance their payment offerings. In this era of digitization, most customers are opting for digital payment alternatives, which make it crucial for banks to offer diversified payment solutions to retain businesses.

Among others, Deutsche Bank DB acquired a stake in Modopayments in July 2018, while Citigroup C entered into a partnership with PayPal PYPL to expand its mobile offerings in 2017.

Shares of U.S. Bancorp have gained 4.8% in the past three months, outperforming 2.7% growth recorded by the industry .

Currently, U.S. Bancorp carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

U.S. Bancorp (USB): Free Stock Analysis Report

Citigroup Inc. (C): Free Stock Analysis Report

PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report

Deutsche Bank Aktiengesellschaft (DB): Free Stock Analysis Report

To read this article on Zacks.com click here.

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


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

In This Story

PYPL USB DB C

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More