U.S. Bank and Fiserv partner to enhance credit card solutions

MINNEAPOLIS - U.S. Bank (NYSE: USB) and Fiserv (NYSE: FI), a prominent financial services player with a market capitalization of $93 billion and annual revenue exceeding $20 billion, announced a strategic partnership to integrate U.S. Bank’s Elan Financial Services credit card program into Fiserv’s Credit Choice solution, with new capabilities planned for later this year. According to InvestingPro data, Fiserv maintains a robust gross profit margin of 61%, demonstrating its operational efficiency in the financial technology sector.

The enhanced Credit Choice solution will allow financial institutions to offer their customers a digital-first experience where both credit and debit card information can be accessed and managed in a single location. The integration aims to create a more streamlined user experience for cardholders while providing financial institutions with improved tools for customer onboarding and service. Despite recent market volatility that has seen Fiserv’s stock decline nearly 18% over the past six months, InvestingPro analysis indicates the company maintains a GOOD overall financial health score.

"Integrating an agent card into the client financial institution banking application is truly groundbreaking," said Peter Klukken, head of credit card issuing for Elan Financial Services, in the press release.

The collaboration will begin this summer with the integration of new technology, and full conversion of the portfolio is expected by the end of 2025. Fiserv will continue to support existing clients and onboard new financial institutions during the transition. For investors seeking deeper insights, InvestingPro offers comprehensive analysis through its Pro Research Report, featuring detailed financial metrics and expert analysis of Fiserv’s market position and growth potential.

Erik Wichita, head of Card Services at Fiserv, stated that the partnership will introduce "a new level of digital card integration along with exceptional service and capabilities."

The enhanced program will be available to U.S.-based banks and credit unions through Fiserv. Additional digital card solutions for consumer and business card management are planned for integration in the first half of 2026.

Currently, Credit Choice serves more than 100 Fiserv financial institution clients. The announcement was made in a press release issued by the companies.

In other recent news, Fiserv, Inc. has announced plans to acquire the remaining 49.9% stake in AIB Merchant Services, a move intended to boost growth in Ireland and the European market. The completion of this transaction is contingent upon regulatory approvals and other closing conditions, with expectations for finalization in the third quarter. Jefferies analysts have maintained a Hold rating on Fiserv stock with a price target of $165, reflecting a stable outlook despite some fluctuations in the company’s small and medium-sized business index. Meanwhile, UBS analysts reiterated a Buy rating, maintaining a $225 price target, citing Fiserv’s Clover growth strategy and potential for international expansion as key drivers for future revenue. Truist Securities also initiated coverage with a Buy rating and a price target of $181, noting the company’s robust position in the integrated payments sector. Despite challenges, Truist anticipates high single-digit growth, considering the macroeconomic environment. These developments highlight Fiserv’s strategic focus on growth and expansion in both domestic and international markets.

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