Peoples Bank expands partnership with Deluxe for merchant services

MINNEAPOLIS - Peoples Bank has expanded its partnership with Deluxe (NYSE:DLX) to include merchant services, the payments and data company announced in a press release. Deluxe, which generates annual revenue of $2.1 billion and maintains impressive gross profit margins of 52.5%, has shown strong financial performance according to InvestingPro data.

The $9.5 billion financial institution headquartered in Marietta, Ohio, has progressively deepened its relationship with Deluxe over the past year. Peoples Bank began placing promotional business with Deluxe in January, followed by check business in March, before adding merchant services in this latest expansion. Deluxe, which has maintained dividend payments for 55 consecutive years and currently offers a 6.2% dividend yield, has demonstrated remarkable stability in shareholder returns.

Brian Mahony, President of Merchant Services at Deluxe, described Peoples Bank as "a highly engaged Deluxe client," noting the partnership demonstrates "what’s possible when we bring our teams together."

Rich Vaughan, EVP of Retail & Business Banking at Peoples Bank, stated that Deluxe "continues to be a trusted partner" and acknowledged the company’s "collaborative approach" in understanding the bank’s goals.

According to the statement, the partnership aims to help Peoples Bank transform transactional services into strategic assets that can strengthen customer loyalty, improve operational efficiency, and drive non-interest income.

Deluxe processes more than $2 trillion in annual payment volume and serves millions of small businesses and thousands of financial institutions. The company, which has been in operation for over 100 years, provides solutions to help businesses pay, get paid, and grow. Currently trading below its InvestingPro Fair Value, Deluxe presents an interesting opportunity for investors seeking exposure to the financial services sector.

In other recent news, Deluxe Corporation reported its second-quarter financial results for 2025, exceeding earnings per share (EPS) expectations with a reported $0.88, compared to the forecasted $0.75. However, the company slightly missed revenue projections, recording $521.3 million against an anticipated $526.93 million. In another development, Deluxe announced the appointment of Michelle T. Collins to its Board of Directors. Collins, a retired Deloitte partner, brings over 40 years of experience in business transformations, mergers and acquisitions, enterprise risk management, and financial reporting. During her tenure at Deloitte, she held significant roles, including Vice Chair and member of the U.S. Board of Directors. These recent developments highlight Deluxe’s ongoing strategic adjustments and financial performance.

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