Since Worldpay was bought by Florida-based Fidelity National Information Services (FIS) Global for $35bn in 2019, FIS has been dominating in payment solutions internationally. Demand for this payment processing firm continues to surge as more shoppers use their products to purchase online or use cards in shops.
In 2019, FIS said buying Worldpay would help the financial services provider cater to banks and other financial firms. How has FIS developed within the last several years, and how has Worldpay contributed to this growth? Keep reading for a closer look.
FIS Global as a leader in payment solutions
Since its inception in 1968, FIS has acquired several other financial technology firms, such as Certegy in 2006 and eFunds in 2007, to connect merchants, banks and capital markets and modernise businesses.
These broadened its global reach, and by early 2013, FIS was able to launch real-time payment network PayNet — a secure, open architecture platform that serves as a digital money movement network. The person-to-person (P2P) and non-card-based solution provides real-time access to deposit accounts and enables instant authorisation of transactions.
With FIS’ acquisition of SunGard in 2015 for $9.1 billion, FIS was able to further cement its reputation in new markets for financial technology services under the guidance of then-president of FIS Banking Solutions Martin Boyd. Boyd began his leadership journey in 1998 under SunGard and was assimilated into FIS in 2015 where he would oversee the development and launch of solutions and services centred across the full client experience.
He was succeeded in 2022 by financial services veteran John Durrant, who plans to maximise FIS’ acquisition of Worldpay to continue leading the banking solutions business into the future.
The acquisition of Worldpay
By acquiring Worldpay in 2019, FIS was able to expand its capabilities and improve its payment offerings. This included the development of card payment machines to cater to the growing demand for fast and secure cashless transactions in small and medium businesses (SMBs), alongside email payments with Pay By Link. This reduces time chasing unpaid payment link invoices with unique links that let SMBs keep track of each payment request.
To further augment how SMBs access embedded payments and finance through software providers, FIS launched Worldpay for Platforms in 2022. On one hand, this SaaS solution allows SMBs of all types to accept hundreds of currencies and popular payment methods globally. This means that SMBs no longer need to pay separate partners to assist with card issuance, cash advances, or faster access to cash flow.
On the other hand, this means that software companies can also quickly onboard merchants to have access to the payment capabilities of the payment processor in Worldpay from FIS. This dual-pronged strategy in simplifying the collaboration between both parties has established FIS’ position of leadership in the fintech market. FIS has thus secured its ranking of number one in the 2022 IDC FinTech Rankings once again — the ninth time in the past 12 years.
During its time of acquisition, WorldPay customers included TopShop, Clarks, Monsoon, and Accessorise alongside multiple pub and restaurant chains. Today, Worldpay has opened new markets for global brands as its merchant business expands to other countries including South Africa, Nigeria, Malaysia, and most recently, South Korea. By partnering with Seoul-based TossPayments, Worldpay can help the rapidly developing market manage its business finances on a single platform.
The playing ground for SMBs is widening to allow better competition with larger competitors. Simultaneously, the eCommerce industry is growing as FIS and Worldpay streamline payment processing capabilities around the globe. Investors and the public can thus anticipate further growth from the fintech industry as FIS Global leads the way, with 12-month forecasts seeing a median estimate of +50.68% in stock price increases.
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