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Fidelity National's (FIS) New Platform to Better Serve SMBs

Fidelity National Information Services, Inc. FIS recently introduced a software-as-a-service (SaaS) solution, Worldpay for Platforms. It merges FIS’ global merchant and banking prowess with the much-in-demand embedded payments technology.

Integration of the payments facility became easier for FIS with its buyout of Atlanta-based innovative technology firm Payrix in February 2022.

The Worldpay for Platforms eases the task of software companies to extend embedded payments and finance solutions in the form of an integrated payments system to small-to-medium sized businesses (SMBs). Through the platform, SMBs will benefit from the opportunity to leverage the well-established payment capabilities of FIS and solidify their presence in the rapidly-evolving digital payments space.

The strength of the newly-launched platform introduces a package of multiple and diverse benefits to SMBs. They can engage in online, mobile and point-of-sale transactions and accept payments made in several currencies from all over the world. Concurrently, they can also take care of subscriptions, billing, invoices and chargebacks. Funds can be sent easily or refunds can be processed seamlessly by SMBs, courtesy of the Worldpay for Platforms.

With regard to benefiting the software companies in more ways than one, the entities are not required to offer clients multiple technology tools with the availability of the integrated payments platform provided via Worldpay for Platforms. In the absence of hefty investments in infrastructure, software companies can shine as a full payment facilitator. In addition, the new SaaS solution fetches other benefits like tailored payment offerings, differentiated pricing and advisory support for software companies.

To aid SMBs, FIS’s latest move can be termed a time opportune one. Since the onset of the COVID-19 pandemic, the SMBs grappled with inadequate resources and financial uncertainties. But as the trend to go digital shows no signs of slowing down, there remains an alarming need for SMBs to infuse digitization into its operations.

Also, Fidelity National seems to capitalize on the growing popularity of embedded finance solutions that pave the way for instant real-time remittances.

The latest platform launch is testament to FIS’ continuous efforts to invest in innovative technologies and find solutions to advance the payments infrastructure amid a booming digital economy.

In August 2022, Fidelity National unveiled a payment solution and a lab to offer hassle-free digital payments and easy integration of Central Bank Digital Currencies (CBDC) networks into a country’s economy.

Shares of Fidelity National have lost 3.6% in the past six months compared with the industry’s decline of 1%.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & Key Picks

Fidelity National currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Business Services space are Barrett Business Services, Inc. BBSI, Clean Harbors, Inc. CLH and ICF International, Inc. ICFI. While Clean Harbors sports a Zacks Rank #1 (Strong Buy), Barrett Business Services and ICF International carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Barrett Business Services outpaced estimates in three of the last four quarters and matched the mark once, the average beat being 45.83%. The Zacks Consensus Estimate for BBSI’s 2022 earnings suggests an improvement of 26% from the year-ago reported figure. The same for revenues suggests growth of 12% from the year-ago reported number. The consensus mark for BBSI’s 2022 earnings has moved 3.8% north in the past 60 days.

Clean Harbors’ earnings outpaced estimates in each of the trailing four quarters, the average beat being 37.51%. The Zacks Consensus Estimate for CLH’s 2022 earnings suggests an improvement of 86.3% from the year-ago reported figure. The same for revenues suggests growth of 33.4% from the prior-year reading. The consensus mark for CLH’s 2022 earnings has moved 52.7% north in the past 60 days.

The bottom line of ICF International outpaced estimates in each of the last four quarters, the average beat being 10.03%. The Zacks Consensus Estimate for ICFI’s 2022 earnings suggests an improvement of 16.6% from the year-ago reported figure. The same for revenues suggests growth of 14.9% from the year-ago actuals. The consensus mark for ICFI’s 2022 earnings has moved 1.6% north in the past 30 days.

Shares of Barrett Business Services, Clean Harbors and ICF International have gained 8.5%, 14.9% and 17.4%, respectively, in the past six months.


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