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Global Payments (GPN) Ties Up to Launch Payment Solution in UK

Global Payments (GPN) teams up with Virgin Money in a bid to introduce an integrated payment offering equipped with enhanced digital prowess for Virgi...

This story originally appeared on Zacks

Global Payments Inc. GPN has made a host of back-to-back announcements, which include a collaboration with Virgin Money to offer a comprehensive portfolio of digital capabilities and the acquisition of Mineral Tree in an effort to strengthen its presence across the business-to-business (B2B) cloud payments space. Global Payments has also been chosen to be the official commerce technology provider of Mercedes-Benz stadium.

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Through the partnership, Virgin Money, which is a renowned financial services provider in the U.K., and Global Payments intend to introduce a connected payment offering. The solution will be developed utilizing the innovative two-sided network and technologies of Global Payments. Subject to regulatory approval, the tie-up also aims to integrate the debit and credit cards of Virgin Money within a single platform.

Global Payments will act as the exclusive merchant services provider for personal and business customers of Virgin Money. With an advanced portfolio of digital capabilities easily accessible, the virtual and face-to-face communication between merchants and consumers will improve, thereby leading to enhanced digital payments experiences globally.

The recent partnership further strengthens the robust relationship that Global Payments and Virgin Money have been sharing for quite some time. The latest endeavor has been pursued through Total System Services (“TSYS”), which is the company’s Issuer Solutions unit.

Alliances similar to the latest one highlight Global Payments’ commitment to revolutionizing the digital payments landscape. Such deals seem to be beneficial for the company as well since they bolster its digital capabilities and strengthen presence globally. The company remains the preferred choice for partners owing to its expertise across the payments ecosystem to devise new digital offerings, which facilitate seamless payments across the world at an increased speed and lower costs.

The alliance is a time-opportune one as well considering the growing tendency of most companies to launch digital solutions worldwide. The COVID-19 pandemic has most definitely accelerated the adoption of digital means. To tap the prospects prevailing in the digital payments space, Global Payments has been acquiring or partnering with several organizations. Its collaboration with Google Cloud in 2021 was aimed to boost digital offerings. The company worked closely with Amazon Web Services in 2020 for upgrading its core issuing platform to offer cutting-edge payments solutions.

The addition of TSYS in September 2019 has not only empowered Global Payments with the much-needed scale but also boosted its presence in several new markets. Several contract wins and renewals of Global Payments this year, which include Banco Carrefour, UMB Bank and Barclays US Consumer Bank, highlight the partners’ and customers’ trust on the company’s innovative capabilities. These initiatives have been driving the Issuer Solutions segment’s revenues, which during the first half of 2021, improved 7.8% year over year and contributed 23% to the company’s consolidated revenues.

Zacks Rank & Price Performance

Shares of Global Payments, which carries a Zacks Rank #3 (Hold), have gained 3.5% in a year against the industry's decline of 4.1%.

Zacks Investment Research

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks in the financial transaction services space include EVERTEC, Inc. EVTC, Green Dot Corporation GDOT and Equifax Inc. EFX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EVERTEC, Green Dot and Equifax have a trailing four-quarter earnings surprise of 28.42%, 64.53% and 17.71%, on average, respectively.


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