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Fidelity (FIS) and Volt Unite to Adopt A2A Payment Method

Fidelity National Information Services, Inc. FIS recently announced its collaboration with Volt to make open banking more accessible to merchants. With this deal, FIS merchants will be able to receive payments via open banking from their customers.

This move will aid Fidelity National in boosting its top line in the future. The company derives part of its revenues from transaction processing fees paid by merchants. This revenue stream is recurring and will rise further as the number and value of transactions increase after the abovementioned integration. Merchants will benefit from pay-by-bank opportunities and be able to tap the growing market of account-to-account (A2A) payments.

Open banking technology is growing worldwide, owing to its seamless use in payments. The value of payments using A2A technology has increased 13% on a worldwide basis from $463 billion in 2021 to $525 billion in 2022. A2A payments are expected to contribute 10% to the total e-commerce payments market by 2026.

This collaboration will not only provide more choices for payments to customers but also reduce the cost of accepting payments for merchants. Moreover, the instant settlement will boost merchants cash flow. Merchants with global ambitions can also take advantage of A2A payments for cross-border commerce.

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This partnership highlights Fidelity’s unwavering focus on integrating innovative solutions and thus growing its business. Fidelity will continue to invest significantly in strategic growth endeavors to boost revenues and amplify its market. This partnership is a relief for customers who demand flexible options. Customers can benefit from more choices for seamless payments. Worldpay’s expertise as the top merchant acquirer, combined with Volt’s technical and industry superiority, should open doors for innovation and revenue growth in the future.

Price Performance

Shares of Fidelity have lost 1.7% in the past month compared with a 2.2% decline of the industry.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & Key Picks

Fidelity currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Financial Transaction Services space are Usio, Inc. USIO, Remitly Global, Inc. RELY and Paysafe Limited PSFE. Each of these companies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Usio 2023 earnings indicates a 140.7% increase from the prior-year reported number. Also, the consensus mark for revenues for the year indicates 19.1% growth. The consensus estimate for earnings witnessed one upward estimate revision over the past 60 days against none in the opposite direction.

The Zacks Consensus Estimate for Remitly Global’s 2023 earnings indicates a 7.4% increase from the prior-year reported number. Also, the consensus mark for revenues for the year indicates 36.8% growth.

The Zacks Consensus Estimate for Paysafe’s 2023 earnings is pegged at $2.2 per share, which witnessed two upward estimate revisions over the past 60 days against none in the opposite direction.

PSFE’s earnings beat estimates in three of the last four quarters and met the mark once, the average surprise being 190.5%.

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

Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report

Remitly Global, Inc. (RELY) : Free Stock Analysis Report

Usio Inc (USIO) : Free Stock Analysis Report

Paysafe Limited (PSFE) : Free Stock Analysis Report

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Zacks Investment Research