Summary List PlacementFIS, Fiserv, and Global Payments recently reported their Q4 earnings, with each noting that revenue growth was driven by digital solutions as the coronavirus pandemic continued to emphasize online and electronic transactions.
FIS: The company reported $3.3 billion in total revenues in Q4, with organic revenue growth remaining flat and overall revenue growth dipping 1% annually—an improvement over Q2 2020, when the pandemic first hit. However, FIS reported a 9% year-over-year (YoY) decline in merchant services revenue in Q4, which the company attributed to the pandemic's continued impact. Despite these challenges, FIS's digital solutions helped spur growth: It recently expanded its partnership with Walmart to process ecommerce transactions and is winning new business with online providers like Grubhub, as two examples—allowing the company to seize the opportunity created by the rapid shift in consumer spending to online and digital channels, according to Gary Norcross, chairman, president, and CEO of FIS. Fiserv: The firm's adjusted revenues declined 2% YoY, coming in at $3.62 billion. Fiserv's minor revenue decline in Q4 is still an improvement over Q2, when the company reported a 12% annual drop in revenue growth as a result of consumers curbing overall spending due to the pandemic. In keeping with pandemic-driven digital trends, Fiserv's digital businesses experienced notable growth throughout Q4: Mobile point-of-sale platform Clover's gross payment volume grew 25% to $34 billion in the quarter. Meanwhile, omnichannel transactions across Fiserv's business, such as buy online, pick up in-store, skyrocketed 125% annually thanks to some of its quick-service restaurant partners, which leaned heavily into the service offerings to help boost business growth during the pandemic noted Fiserv President and CEO Frank J. Bisignano on the firm's Q4 earnings call. Combined, these services led to a 25% annual increase in global ecommerce transactions for Q4 and 2020 overall. Global Payments: The company's revenues declined 2.9% YoY in Q4, with total revenues landing at $1.93 billion. Taking a closer look, merchant solutions, which make up the bulk of Global Payments' business, experienced a 4.5% annual dip in growth, with revenues coming in at $1.23 billion—a decrease from Q2, when the metric's revenues grew 7.7% YoY. Unlike most firms that saw significant declines in Q2 because of the pandemic, Global Payments experienced growth in Q2, perhaps because more firms were leaning on Global Payments to digitize payment processes—which could be leading to a dip now, as a slowdown in demand among firms that have already digitized could be taking hold. However, Global Payments' new partnership with Google should help reinvigorate the merchant solutions segment since it'll allow the firm to tap into Google's cloud-based digital offerings and will help drive merchant customer acquisition opportunities.
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