Fidelity national information services is buying worldpay for about $35 billion to combine forces as financial transactions increasingly move online.
The payment service industry works behind the scenes to help complete the process for purchases. It was a simpler exercise when those transactions took place in person with a swipe of a card. But transactions have largely moved online and grown in complexity, forcing those background players to deal with multiple currencies, various forms of payment and more at lightning speed. The industry also faces a growing base of startup competitors.
Fidelity, or FIS as it is known, is a more traditional payment service provider, supporting more staid practices such as banks transactions. Worldpay is the “crown jewel” of the e-commerce niche, said Instinet analysts Dan Dolev and Conan Leon. It has grown quickly as the companies that it services have grown, and that makes it an attractive acquisition target.
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March 23, 2019