Numbers from Fiserv Inc. early Tuesday indicate the big processor’s payments and network business for financial institutions is growing at a steady clip, with September-quarter revenue in that business up 5% year-over-year, to $1.71 billion in volume. Riding that wave, the company’s top brass late Monday announced a deal with New York City-based Melio, a business-to-business payments-technology company.
The new partnership will peddle Fiserv’s CashFlow Central service to banks looking to enter or deepen their stake in the small-business payments market, Fiserv says. It will be available to start with through more than 3,500 institutions that already use Fiserv’s CheckFree service for bill payment, Fiserv said Tuesday. More than 3,500 institutions are using CheckFree.
“Digital payments, particularly with Melio, meet the needs of small businesses,” said Fiserv chief executive Frank Bisignano during a call early Tuesday to discuss his company’s third-quarter results. That, he added, will mesh well with Fiserv’s largest division, the merchant-acceptance unit. “Melio will be available to our merchant base,” Bisignano said.
In merchant processing, the Brookfield, Wis.-based processor saw third-quarter revenue jump fully 12% year-over-year, to $2.11 billion. Here, a main driver is Clover, the cloud-based point-of-sale system Fiserv inherited when it acquired Bisignano’s prior company, First Data Corp., in 2019 to forge a major position in merchant processing.
Clover rang up $68 billion in payment volume in the quarter, Fiserv reported, up 15% compared to the same period last year. Clover revenue meanwhile rose 26% year-over-year, though the company did did not release the absolute figure. “Our work to integrate First Data with Fiserv is not only done, but driving revenue,” Bisignano said. “Our assets are unmatched.”
For the quarter, Fiserv reported $4.62 billion in adjusted revenue, up 8% compared to the same period last year. Adjusted net income came to $1.2 billion, up 14%.