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Treasury

FIS-Worldpay's $43 billion merger a sure sign scale is paramount in payments

Consolidation is due in the fintech payments sector as new specialized companies begin to build scale.

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The closure of a $43 billion deal between FIS and Worldpay last week – the biggest deal in the payments M&A space to date – is a sign that consolidation pressure is building in the space.

“With the introduction of instant payments, electronic payments have exploded,” says Jerry Norton, vice-president, financial services, at IT and business process services company CGI.

Jerry Norton-160x186

Jerry Norton,
CGI

“But to gain market share, payment providers require scale. One of the quickest and cheapest ways of doing this is to acquire or merge with a company as opposed to developing new and expensive technology themselves.”

Just two days before the FIS-Worldpay merger was finalized on July 31, payments and technology company Fiserv and US financial services company First Data finalized their merger for $22 billion.




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