Payments Dive
Card network Visa pointed to the impact of Reg. II during its quarterly earnings call last month, as part of what was behind a decline in debit transaction growth. The company’s executives had previously downplayed the potential impact from the Fed’s clarification of the debit routing rule for online transactions, which took effect July 1, 2023.
“There’s fabulous competition out there for these transactions,” Bisignano said Tuesday.
In another fourth-quarter development, Fiserv acquired Sled, a payments software company based in Curitiba, a city in southern Brazil; terms of the deal were not disclosed. The purchase lays the groundwork to support more fee-based Pix transactions for Fiserv’s merchant clients, Bisignano said during the call. Pix is Brazil’s instant payment platform.
Sled is a software services company “that will allow Fiserv to operate as a direct payment service provider, expanding our reach into the full Pix instant payments universe,” he said. Later during the call, Bisignano said Fiserv is constantly evaluating where it can add software functionality, as the company considers acquisitions.
Fiserv will roll out Clover, its point-of-sale hardware and software for small and medium-sized merchants, in Brazil in April, a move the company expects will further its growth in the country, Bisignano said.
Fiserv’s fourth-quarter revenue rose 6%, to $4.92 billion, according to a news release. Net income climbed 11%, to $870 million.
Merchant acceptance revenue grew 14% in the quarter, driven by 30% revenue growth for Clover. But the company experienced a 3% decline in quarterly revenue for its fintech segment, and its payments segment revenue grew only 3%, according to a quarterly earnings presentation.
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