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JACKSONVILLE, Fla. - FIS (NYSE:FIS), a financial technology leader with a market capitalization of $42.24 billion, announced Thursday it has expanded its partnership with Visa to provide financial institutions of all sizes with access to new payment capabilities, according to a company press release. According to InvestingPro analysis, FIS appears undervalued based on its Fair Value estimates.
The collaboration aims to help regional and community banks compete with larger issuers by offering technologies that can potentially increase revenues, improve customer retention, and reduce fraud losses. This strategic move aligns with FIS’s solid financial foundation, maintaining dividend payments for 23 consecutive years and generating $2.76 billion in levered free cash flow over the last twelve months.
The expanded partnership will introduce several new capabilities to the FIS ecosystem, including stop payment services for recurring merchant payments, digital campaign management tools, wallet link functionality that pushes branded digital cards to customers’ digital wallets, and e-commerce fraud mitigation solutions.
"According to Experian, the average American holds nearly four credit cards, highlighting the need for issuers to have efficient systems to stay competitive," said Chris Como, head of Cards and Money Movement at FIS. "By integrating Visa’s advanced solutions into the FIS ecosystem, we are helping to level the technological playing field."
Kathleen Pierce-Gilmore, senior vice president and global head of Visa Issuing Solutions, stated that the collaboration aims to make it easier for financial institutions to compete by offering solutions that drive growth and enhance customer retention.
The new capabilities are expected to be available to FIS client issuers within 2025. This announcement follows other recent strategic partnerships FIS has formed with companies including Oracle, Fulham Football Club, PwC, and Affirm.
FIS is a financial technology company that provides solutions to financial institutions, businesses, and developers, and is a member of both the Fortune 500 and the Standard & Poor’s 500 Index.
In other recent news, Fidelity National Information Services (FIS) reported its first-quarter 2025 earnings, slightly surpassing expectations with an adjusted EPS of $1.21 compared to the forecasted $1.20. The company’s revenue stood at $2.5 billion, marginally below the anticipated $2.51 billion. Despite the earnings beat, the company maintained its full-year guidance, projecting adjusted revenue growth and margin improvements in the upcoming quarters. Stephens analysts responded to these results by raising the price target for FIS to $100, maintaining an Overweight rating. They highlighted the company’s successful launch of previously delayed transactions and strong demand for its services, suggesting a positive outlook for the rest of the year.
Meanwhile, Jefferies analysts adjusted their price target for FIS to $80 from $75, retaining a Hold rating. They expressed concerns about the company’s second-quarter guidance, which predicts lower EBITDA, and emphasized the need for improved banking growth and margins to meet full-year targets. The recent acquisition of the Issuer business was noted as a strategic move expected to enhance FIS’s earnings visibility and financial position. Analysts from Stephens emphasized the potential revenue and cost synergies from integrating credit issuance solutions with existing debit offerings. The acquisition is seen as a significant step in strengthening FIS’s market position and financial health.
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