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SAN JOSE, Calif. & MILWAUKEE - Fiserv, Inc. (NYSE: FI) and PayPal Holdings, Inc. (NASDAQ: PYPL) announced a partnership to develop interoperability between their respective stablecoins, FIUSD and PayPal USD (PYUSD), according to a press release statement.
The collaboration aims to enable consumers and businesses to transfer funds both domestically and internationally between the two platforms. The partnership will focus on integrating both stablecoins into various payment flows, including cross-border transactions, payouts, and merchant solutions. This move aligns with Fiserv’s successful track record, reflected in its solid 61% gross profit margin and consistent revenue growth of 6.6% over the last twelve months.
Takis Georgakopoulos, COO at Fiserv, stated that the partnership furthers the company’s mission to scale stablecoin-powered payments by leveraging its position at the intersection of banking and commerce.
Frank Keller, Executive Vice President at PayPal, noted that blockchain-based technology addresses common business challenges by enabling faster transfers at any time of day, nearly anywhere around the globe.
Fiserv also announced it will develop and launch FIUSD, described as a bank-friendly stablecoin designed to enable financial institutions to offer next-generation banking solutions. PYUSD, launched in 2023, has been used for startup investments, cross-border transfers via Xoom, and vendor invoice reconciliation.
The companies indicated that the partnership underscores their commitment to driving innovation in financial services and providing businesses and consumers with advanced payment technologies.
Neither company provided specific timelines for when the interoperability between the stablecoins would be available to users. Investors seeking deeper insights into Fiserv’s financial metrics and growth potential can access comprehensive analysis through InvestingPro, which offers exclusive ProTips and detailed financial health assessments for informed decision-making.
In other recent news, Fiserv announced plans to launch a stablecoin platform by the end of 2024, collaborating with blockchain platform Solana and stablecoin companies Circle Internet Group and Paxos. This initiative aims to offer a stablecoin called FIUSD, providing an opportunity for banks to create their own branded coins. In another development, Fiserv has partnered with Early Warning Services to offer the Paze digital wallet, enhancing secure online transactions through tokenization. Meanwhile, Mizuho lowered its price target for Fiserv to $194.00, citing reduced growth expectations for the Clover payment processing platform, although it maintained an Outperform rating. Additionally, Fiserv has entered into a strategic partnership with U.S. Bank to integrate the Elan Financial Services credit card program into its Credit Choice solution, enhancing digital card management capabilities. Furthermore, Fiserv plans to acquire the remaining 49.9% stake in AIB Merchant Services, aiming to boost growth in Ireland and the European market.
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