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Investing.com - Fiserv (NYSE:FI), a prominent financial services player with $20.7 billion in annual revenue and a market capitalization of $93.1 billion, saw its shares rise Monday after announcing plans to launch a new digital asset platform, including a stablecoin called FIUSD, by the end of 2025. According to InvestingPro, the company maintains a robust 61% gross profit margin.
The financial technology provider’s new platform will help its customers, particularly regional and community banks, implement stablecoin technology at no additional cost, though Fiserv will charge transaction fees and take a portion of yield earned on reserves such as Treasuries.
Fiserv also disclosed an expanded partnership with PayPal (NASDAQ:PYPL) to integrate FIUSD and PayPal’s PYUSD into cross-border transactions, payouts, and merchant solutions.
BofA Securities reiterated a Buy rating on Fiserv stock with a price target of $236.00, noting that while the announcement drove shares higher, they would not expect any near-term benefit to financial estimates.
The financial services firm views Fiserv’s current multiple of approximately 14 times calendar 2026 price-to-earnings ratio as "a particularly attractive entry point" given the company’s profit and loss algorithm.
In other recent news, Fiserv announced a partnership with PayPal to develop interoperability between their stablecoins, FIUSD and PYUSD, aiming to facilitate both domestic and international fund transfers. This collaboration underscores Fiserv’s commitment to scaling stablecoin-powered payments and integrating them into various payment flows. Additionally, Fiserv plans to launch a stablecoin platform by the end of 2024, which will be compatible with other stablecoins and cater to its extensive network of financial institutions and merchants. In a separate development, Fiserv has partnered with Early Warning Services to offer the Paze digital wallet, enhancing secure online checkout experiences through tokenization.
Furthermore, Fiserv and U.S. Bank have announced a strategic partnership to integrate U.S. Bank’s Elan Financial Services credit card program into Fiserv’s Credit Choice solution. This integration aims to streamline user experiences by allowing access to both credit and debit card information in one location. Meanwhile, Mizuho (NYSE:MFG) has lowered its price target for Fiserv, reflecting reduced growth expectations for the Clover payment processing platform, though it maintains an Outperform rating. Despite the revised growth estimates, Mizuho continues to express confidence in Fiserv’s management to achieve its targets. These developments highlight Fiserv’s ongoing efforts to innovate and expand its offerings in the financial technology sector.
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