Fiserv at Baird Conference: Strategic Growth and Innovation

On Tuesday, 03 June 2025, Fiserv Inc. (NYSE:FI) shared its strategic vision at the Baird Global Consumer, Technology & Services Conference 2025. CEO Mike Lyons highlighted opportunities and challenges, focusing on growth initiatives and technological advancements. While the company foresees positive growth, it faces hurdles in integrating recent acquisitions and expanding its market reach.

Key Takeaways

• Fiserv’s financial solutions business is projected to grow by 6% to 8% this year.
• Clover’s revenue is expected to reach $3.5 billion in 2025, with significant growth projected for 2026.
• The company is focusing on expanding its capabilities and distribution channels for its Clover platform.
• Fiserv plans to introduce stablecoin and crypto infrastructure to support core clients.
• The Fiserv Small Business Index showed a 3% year-over-year increase, indicating stable growth.

Financial Results

Fiserv’s financial solutions business is guiding for a 6% to 8% growth this year, building on the momentum from the First Data merger. Since the merger, growth has increased from 2% to 3% to a robust 5% to 7%.

Clover, Fiserv’s platform for small businesses, is projected to generate $3.5 billion in revenue this year, with expectations to reach $4.5 billion next year. The platform’s volume growth, excluding a gateway conversion, remains in the low double digits.

Merchant solutions saw an 8% organic growth in Q1, with a full-year growth guide of 12% to 15%.

Operational Updates

Fiserv is modernizing its financial solutions by consolidating U.S. cores from 16 to 5 and leveraging its cloud-based API core, Finxact. The company is also developing an embedded finance platform and rolling out a new digital platform, XD.

Clover is expanding its capabilities by integrating cash flow solutions and partnering with ADP for payroll services. The platform is launching in five new countries, including Brazil, and is enhancing customer experience through operational excellence.

Future Outlook

Fiserv plans to support core clients with infrastructure for stablecoin-related activities, leveraging Finxact and PayFair. The company aims to expand Clover’s suite of value-added products and integrate it into Commerce Hub for large enterprises.

Merchant solutions growth is expected to benefit from Clover’s acceleration and stabilization in Argentina and the Caribbean.

Q&A Highlights

During the Q&A session, investors expressed concerns about the growth potential of Clover and the merchant solutions sector. Lyons emphasized Fiserv’s strategy of leveraging both financial and merchant solutions to meet client demands for advanced technology.

He reassured investors of Clover’s strong growth outlook and its role in Fiserv’s overall strategy.

Readers are encouraged to refer to the full transcript for more detailed insights into Fiserv’s strategic plans and market positioning.

Full transcript - Baird Global Consumer, Technology & Services Conference 2025:

Unidentified speaker, Interviewer: Well, good morning, everyone, and welcome to the Baird conference this year. We’re we’re very pleased to be hosting all of you. We’re very pleased to be hosting Fiserv this morning with new CEO, Mike Lyons, who’s been at Fiserv a few months, and this is one of his first first conferences at Fiserv. I think all of you know Fiserv has been one of the most stable growth businesses really in the history of the markets, quite honestly. I think this will be their fortieth year in a row of 10% plus EPS growth.

I’ve been here covering the stock for 20 of them, so it’s been it’s been a pleasure. And maybe what we can do with Mike is just kind of kick off. Mike comes from PNC Bank and was very familiar with Fiserv both the merchant side and the bank processing side. Maybe you can give a little reflection on kind of how we viewed Fiserv while at PNC and now, know, how he’s viewing the company now as CEO.

Mike Lyons, CEO, Fiserv: Well, first of all, thanks for having us. Good hype video to get the morning going. That was well done. Well done by you all. Yes, I think I spent I would go back and say even at the time of Bank of America, last two decades of my career have been inside Bank of America and inside of PNC, both big partners for Fiserv.

So I’ve gotten a chance to see firsthand the value we can add to banks in a world and broadly financial institutions in a world that’s increasingly dominated by technology and the competitive landscape is changing every day on that front. So you take we have 10,000 financial institution relationships globally. So the experiences from they come from that are incredibly valuable. We have scaled operating platforms, which can be very valuable. And then we have a whole bunch of resources around the world, including 13,000 software engineers.

So our ability to help financial institutions in a world, I just mentioned to you before at the start, JPMorgan said a couple of weeks ago at their IR day that they’re going to spend $13,000,000,000 on technology this year. So the other 9,000 U. S. Financial institutions, probably 20,000 financial institutions globally, how do you compete with that without help? And that’s where we think we’ve got a great platform, whether it’s Cash Flow Central, Fintech, XD, Advanced Defense, which is a fraud tool.

All these solutions are built for a specific purpose of helping financial institutions modernize, grow, digitize and compete in a world that’s where technologies become paramount in the banking world. I think that’s really what we’re trying to do with the whole what we call it the client first mindset. It’s not that innovative, but go and understand exactly what our clients are trying to accomplish. We’ve got all these resources within Fiserv across both the merchant side, but any type of payment side and on the FI side and then deliver solutions into companies that ultimately help them run their businesses better. Our belief is, and you can see it in the numbers, if we consistently do that and stay operationally excellent, you can increase average revenue per FI for a very long period of time.

You go through the institution as I’ve met about a thousand clients over the last ninety days, it’s 20 products, 30 products, 90 products, some with over 100 products. So as the world evolves, technology evolves, the payments world evolves, the FI world evolves, we’ll continue to expand what we offer them. Again, trying to meet them where their needs are. It’s a relatively simple model, obviously hard to execute, but we have the scale that we have. It’s a I think it’s a great business for a long time on the FI side.

Yeah. Yeah. And maybe what

Unidentified speaker, Interviewer: we’ll do yeah. We’ll start more on the FI side. I know there’s a lot of questions about merchant. We’ll get to that in a bit.

Mike Lyons, CEO, Fiserv: If we do all the clover first, everyone will leave. So

Unidentified speaker, Interviewer: It’s all good. In so on the on the financial side, you know, coming at it from a being a bank CEO and you know you just talked about JPMorgan spending $13,000,000,000 you guys do what 9,000,000,000 to $10,000,000,000 in the financial segment, so it does seem like there’s a lot of room. Do you think there’s room for bigger banks to increasingly use you guys? Like is there a big penetration story still?

Mike Lyons, CEO, Fiserv: Yes. We I was saying last week, we leave I’ve been struck by the fact that I leave every single this is both on the large merchant side and on the large FI side or even regional bank side. I leave every meeting with a laundry list of stuff to go back to the shop to work on and deliver into it. So our ability again to add value and help people compete in this world, it feels like we have a long runway to go on that. So a big focus for us and this concept of average revenue, everyone knows ARPU, this is sort of our pick average revenue per client.

We can just if we understand what they’re trying to do and continue to leverage scaled operating platforms, it’s the same play everywhere around the world. We just have to get in there, do our job and deliver it.

Unidentified speaker, Interviewer: Yeah. And, you know, if we look at the backdrop today, you know, you run an incredibly stable business. That financial business for years, I think, in the global financial crisis, negative 1% organic, and in really good years, it’s often six percent. I think this year, you’re guiding 6% to 8%. So maybe talk a little bit about the financial backdrop.

Does M and A picking up help? CPIS inflation escalators? Like what are the, you know, few things that move it either way right now?

Mike Lyons, CEO, Fiserv: I go back to this just incredible pressure on technology. The demand from clients, consumer clients and corporate clients is for greater access to their financial institutions and their the appetite for ease of transactions, modernized payments, stability, resiliency, automation, digitization is unending and the banks have to meet have to deliver into that. So you take this FI business, it’s yes, it’s slow and steady grower, but long standing deep relationships, mission critical software, what we’re providing them. It’s not like they could just shut off us and turn on whatever they have in the back office. They don’t have it.

That’s the opportunity for it. Our ability to deliver it cheaper by leveraging the scaled operating platforms and the ability to make these into highly recurring revenues with attractive margins is right in front of us. So again, we do business with 10,000 financial institutions globally, 5,000 in The U. S, over 3,000 of the ones in The U. S.

We have we’re in the privileged position to have the core operating system for, which gives you the chance to deliver all the value added solutions. And that’s not just on the FI side, but on the merchant side as you put the JVs through and the like. So again, average revenue per client goes through it. We’re going it’s like five or six major growth initiatives we’ve got going on the FI side. We’re modernizing The U.

S. Cores and consolidating them down 16 to five. One of those five is Finzac, which is a totally modernized cloud based API core, headless core we call it, that’s getting great traction in the market both as part of a non traditional bank strategy and outside The U. S. As our go to core.

Third big thing we’re going after is embedded finance. Shift in our business from merchants wanting to be banks and banks wanting to be payments companies is pretty interesting. And with some of the recent deals in the market, we’re the only company left with the construct of merchants and FIs under one roof and we’re leading into it. We think it’s the play, not the opposite play. And most it manifests itself for us in embedded finance and you’ve seen some of the headline deals with DoorDash and then Walmart’s One Finance, which is growing at an incredible rate.

That embedded finance platform is Fintech and then it’s the card issuing platform, which is another one of our big growth initiatives and then the recent acquisition we did with Payfair. You put those three together, think we’ve got a totally differentiated embedded finance platform and to be able to go out and stand up a ledger and turn DoorDash into a mini bank for their drivers is that type of stuff can play all through the economy and we’re hearing the demands for that for more and more people. So modernize cores, leverage Finxact, go after embedded finance, leverage this position in our leading global position in card issuing. XD, which is the new digital platform, we’re rolling that out, still have to get it into more and more banks, but it’s done and rolling out. And then the last one, which probably one of the more exciting areas is Cash Flow Central, which we view as sort of the killer app for cash management of small businesses, which banks have never been able to solve.

So at times, yes, it can be boring versus the merchant side of the business, but we see long runway of just growth if we do our jobs. We have all the tools to do it and this shift in merchants merchants trying to get into the banking business and banks trying to get into the payments merchant business is a good one for us.

Unidentified speaker, Interviewer: Yeah. And this this kind of gets at the First Data and Fiserv merger. Can’t believe it was six years ago already. But since that since the merger, this financial solutions business has been growing kind of five to seven, six to eight, I think this year and it used to grow two to three often. So what maybe describe a little bit what did the merger do and is there still a lot of room for the synergies to play out?

Yes. I mean, I think

Mike Lyons, CEO, Fiserv: the merger was is sound. It’s proving to have been a sound combination of the businesses. It’s just not a lot of separation. So you go into a large FI and we had a meeting last week, we’re going to and we’ve got this FI had 32 or 33 products with us, been with us for thirty something years. Every year, you had five products.

In this meeting, they have not been able to reignite their small business growth strategy. So we go in, we show them Cash Flow Central, we show them Clover, and you start two minutes into the meeting, you’re no longer like you and I because you do your segments and we do you’re in the FI world and the merchant, but you go in and talk to a bank about helping small business customers. This is client first mindset and within two seconds, you’re no longer in any of our worlds and the client certainly doesn’t be like, okay, I’m going to shift over to the merchant side of the table and why don’t you tell me about color. They just want to hear about how they can do more business with their small businesses. And the small businesses are telling them they want a integrated suite of products and services that’s highly intuitive to use and highly accessible and that’s what Clover is.

And when we put cash flow central into Clover sort of runs the starts to increase the pace of it. So the world is shifting. Banks, not every small business walks into a branch anymore and says, hey, I’m going to start a small business. They go to the internet with ICs. They go to Intuit.

They go to all these other ways. So how do the you’ve 10,000 banks in The US, highly highly profitable customer segment. So just goes to your question of like, this is far more symbiotic than it may appear to the world. You know, we don’t step. There isn’t the Eleventh Floor at the headquarters for FI and the Twelfth Floor for merchant.

They just start to mesh into each other and and now the merchants are saying, hey, want to stand up a ledger and pay my employees. I want to stand up a ledger and do my own embedded finance. It’s a so we like it. We’re going to lean into it and and keep rolling with it.

Unidentified speaker, Interviewer: And when we when we look at the business, I mean, we do like to look at the subunits. There’s the issuing business within financial. There’s the digital business, and there’s, like, the core banking business. With the wins of, like, Verizon and Target in the issuing business and Cash Flow Central and Digital, I mean, could those units actually grow like into the double digits at some point just based on the backlog and pipeline, etcetera?

Mike Lyons, CEO, Fiserv: Yeah. Think not to go back on the second question, but I think the first thing I’d point out is we don’t again, those the three segments within FI, if FI merchant merge together, the three segments within FI start to merge together, so we don’t think about them as three separate segments and it’s hard to have a conversation with our clients as three separate segments. And sometimes our obviously our clients, sometimes I don’t even know which ones products we put in each. But the core is super the core banking, obviously, it’s been the legacy business. It’s a little bit slower growth, nice margins, highly recurring revenue, very competitive market, but it gives you the chance for all these surrounds.

Issuing, we talked about, we’ve got a great position in issuing one of the leaders globally in it, 25 of the 50 largest issuers in The U. S, Eighty Percent of the private label market, which starts to have that feel of merchant and bank together. And then we go global in the issuing business, six of top eight in India, Three or four of the top two or three of the top five in The UK. And that’s been a good business for us. We’re investing into it.

We think the competitive landscape is interesting there and potentially opportunistic for us. And then on the and so we should there’s an opportunity to grow there. We’ve invested in two platforms, Optus in The U. S, and we’re super excited about Vision Next, which is almost ready to launch. We got our first win, which is a UK bank called Vanquis, but our ability to take Vision Next globally.

So yes, we see a good opportunity for growth on the issuing side. And then on digital side, to your point, it’s got some of our more exciting new products in there, both cash flow I would point out cash flow central and then underappreciated, but maybe has climbed out from under the rock is our debit networks on the heels of the Capital One Discover transaction. We think there’s a lot we can do in the payments world with Star and Excel. So all of it’s embedded in the six to 8% guidance. We don’t try to parse it through, but I think you got to think about it, pretend you’re in the client meeting with us.

We don’t say, hey, we’re trying to grow 10% this year in this segment, so I need you to buy some of this stuff. We’re just saying, what are you trying to do? And this most recent client said, I want to grow small my small business space. So that brings in Clover, that brings in Cash Flow Central, it brings in Commercial Center, it brings in Advanced Defense. And so back to that client first mindset, understand what they’re trying to do and you got to listen, be with them, listen, this is basic sales techniques, then go back into a shop with massive resources and massive product sets and put together a solution, promptly deliver it and stay operationally excellent.

If we do that, it just keeps rolling. It’s beautifully virtuous cycle, but obviously it takes work and execution.

Unidentified speaker, Interviewer: Yeah. Great. And then maybe last on financial, just the stable coin in crypto, know, that’s in the news a lot. You’re in an interesting position with both merchant relationships that could accept some of that at some point and banking relationships with consumers they could hold it in their accounts. Like, you’re in an interesting spot.

How do you see it develop and how how do

Mike Lyons, CEO, Fiserv: you play in in those? Yeah. It’s it’s a great example back to the client first mindset. We are hearing to your point, we’re hearing from financial institutions what happens if one of one of the acts pass and we suddenly have to stand up wallet and custody and we’re told to do it in x number of months and boy that seems like a significant investment. And then we’re hearing from merchants about, hey, maybe something gets done off the rails and maybe that’s got less interchange.

So that’s interesting to us. So how do we stand this up? So for us, it’s a great opportunity that plays right into our strengths of understand what our clients are doing and present a solution to them. In the next week or two, we’ll come out with something that talks about standing up some infrastructure to support all of our core clients, which is significant base of The U. S.

To give them the basic capabilities to custody, create wallets, move P2P on stablecoin and then same thing on where we do business with our merchants help them develop the capabilities to do it. So I don’t know if it’s specifically stablecoin that’s super interesting, but what’s super interesting to us is with each development, this where I go back to the start is technology changes the world, somebody needs to help. How does a credit union in Colorado stand up a stablecoin wallet? And so we love that. We’ll we’ll stand, you know, we’ve got all and and again, how do we do this?

It’s got Finzac in it. It’s got PayFair in it. It’s got so you got a core in it. You got merchant solution. You you obviously, our merchant solutions business, got Carrot in it.

It’s got all the tools we have and we got, as I said, we got 13,000 super smart engineers and you give them a project and they can put to stand up a solution really fast. So that to us is sort of what we love about the business opportunities that show itself. And that can go to agenda commerce, you can go whatever it is, we can stay whatever people want to monetize and do, we can stand up and do it. On the payment side, it’s nice. We don’t it doesn’t have to be on a specific rail.

It’s just our merchants want to facilitate sales. Our banks want to win new customers and make them happy and that’s what we’re going to put solutions in to do it.

Unidentified speaker, Interviewer: Yeah. Yeah. And if if we move to the merchant segment, so the other half of of revenue, in the streets gotten a little uncertain around, you know, we’ve talked about Clover and just that industry in general, the multiples have been quite low. When you walk in now to Fiserv, do you think is the investor community just too negative on what seems like a

Mike Lyons, CEO, Fiserv: pretty good growth business? Yes. Mean, Clover is a great business. It’s got a really strong growth outlook and it’s going to be an important part of our story on all sides. We’ve already talked about it on all sides of our business for a really long time.

Walked into a bit of a firestorm on it. I think what we’ve said and what we tried to say over the last couple of we’ve tried to highlight the puts and takes that impacted volume in the first quarter and then tried to give some flavor on the second quarter. I don’t have anything new to add to that. But I think the key takeaway is if you exclude the gateway conversion, Clover volume growth has been in the low double digits for a sustained period of time and that’s what we indicated for Q2. So at least as the new guy coming in and studying the business, as I said, it’s a great business.

The growth ex the gateway conversion looks really stable. So we haven’t seen a deceleration in growth excluding the gateway conversion. We haven’t seen you go through all of the other Clover KPIs and we had another regular update on Clover yesterday. There’s nothing indicating flashing in some section that there’s something broken about the business, actually continue to perform well. The competitive landscape was the other thing we’ve heard, hasn’t materially changed.

I mean I haven’t been I’ve only been here for a short period of time, talk to any of our people, it’s been competitive. We have great competitors and continues to be competitive. There hasn’t been a major change there. And then we don’t feel any saturation in the market. We just opened announced the opening of a new facility for a lot of our employees in Kansas City and you go to Kansas City, we don’t have anybody selling clover in Kansas City.

So it’s not like we’ve tapped out every part of it. So again, we think it’s great asset. The revenue growth that we did in the first quarter was in line with the expectation that they had come up with to get to $3,500,000,000 and we’re going after Clover growth. We spend our days operational meetings were in, there’s sort of we go through Clover in five different areas. The build out of the horizontal capabilities that’s cash flow central into it, that’s ADP into it.

And then we there’s a number of other capabilities. I go back for a second. I tried to explain this last week. What the banks and the SMBs are telling us they want is this highly integrated suite. They do not want to make 20 phone calls to run their business.

They’re already the CEO, the CFO, the CAO, the CEO. So they want a set of a very intuitive, easy to use set of software. They don’t want a thousand apps in the thing that they have to search through and the like. So they want payroll, they want payments processing, they want employee management, they want insurance, they want taxes, they want accounting, they want website set up, really basic stuff. And we’re in the process of filling out, that’s what the ADP thing is.

We could have bought could have gone out and bought a payroll thing to stick on there. We went out and got the number one payroll provider in The U. S. And created a partnership with them and increased our distribution on the back end of it. We’ll have several other announcements to continue to build out the suite of software.

But that’s what we’re being told they want. So horizontal build out is huge. Cash flow central in there is incredibly important because they’ve never gotten a tool from the banks that is an effective cash management tool when you when and we did it same thing at BofA, PNC. We tried to port down a middle market, upper middle market cash flow solution and they just drown in it. One is too expensive, it’s don’t have the functionality.

So cash flow central, we’re building with Meleo, great partners, incredible engineers. They have built the app that small businesses want. We got to finish it and get it to them, but that will be super important. And then every bank partner we have and every small business we have and us will look at a screen that has every receivable and every payable on the screen. So how that multiplies, what you can do with Clover Capital and the like.

I’ve spent my life lending on deep in arrears, financial statements, a fax of a copy of a fax scanned, mailed in a broken down thing. That’s what you get from some small businesses. Now you see every payable, every receivable, real time. And that’s a great product. So what we’re trying to build is the horizontal build out the horizontal thing is number one.

Second is trying to build out the verticals. We’re hearing increasingly, it’s got to be specific to me. So we had a great business in small restaurants, but getting beat by somebody else in the upper restaurants. So we introduced Clover Hospitality and put the functionality into putting us in a position to compete. We’re going to come out with something on healthcare, something on professional services.

We already were strong in retail. Third big area is the international growth. Our clients we’re an international company. Our clients internationally want Clover, and so we’re giving it to them. We’ve launched in five countries this year.

Brazil is probably the most interesting. Fourth is just better operational excellence. There’s you go through those KPIs I talked about, none of them are running at the you’re awesome meter where you’re doing everything perfectly right and there’s nothing left to do. So we’re trying to pursue operational excellence. And the final piece is just continue to expand the distribution channel.

We think because of the bank partnerships for sure, but then hundreds if not thousands of ISO partnerships, agents, now ADP, just how many different ways can you have people distribute Clover for you for no cost. And so all of that’s important in what we’re trying to do, but it’s a I think your question was right, it’s an important assets could be a good growth engine for us for a long time.

Unidentified speaker, Interviewer: And you’ve talked about three and a half billion of clover revenue this year, 4 and a half billion next year and that growth next year close to high 20s growth, volumes low double digit, revenue high 20s, so there’s a pretty big gap. Is that value added solutions and if companies use those, are they more sticky meaning you know

Mike Lyons, CEO, Fiserv: they just don’t your clients don’t leave once they do the value added? Yeah, think the most often question we get on around Clover is like why don’t you drive some more of this or why don’t you drive some more of that and the basic it goes back to the point I was trying to make was it is a operating platform for small businesses. Every small business in different verticals and in different countries based on the rules and I’ll go through some of the nuances use, we want them to use the platform in any way that makes their business better. We don’t wake up every morning with some set outcome that you should do this and do that. Same thing with your question around banking, issuing digital.

We just want to bring solutions to banks. So we’re giving this operating system to small businesses and we want them to engage in as much as So if they engage, if we can listen to them and continue to put on the platform all the solutions they want, naturally we want them to buy as many of the value added solutions as they can and the gap between revenue growth and volume growth will be high and that’s okay. And then it will differ a lot by countries, right? You got Brazil and Argentina settle sales T plus 15 and T plus 30.

There is no small business in the world who can process a sale and wait for thirty days for the cash to come. So they use anticipation. We don’t wake up in the morning and say, let’s go grow anticipation. It’s just how the client engages with the platform. And yes, if they engage with the platform in ways that they think are valuable to their business, one, you get paid for it and then two, they don’t they tend not to leave, right, which who which one of us leaves a product that we like and use a lot, right?

So yes, I think that the idea is to continue to build out the suite of value added products and services and then put it in a way that it’s easy for them to use. And we’ve got on growth item number four, which is operational excellence. We’ve got ground to take, we’ve got to execute it, we can make the experience better, we can make the software better, we can make it easier to use, we can make the customer service better. There’s all kinds of things we can do to help that, but we got to continue to build it out and then put it in their hands to use in any way they want to use. But I think it’s relatively well time tested is they’ll engage in the products and services and our vast today is well below the vast of some of our peers.

We think ADP is going to be a strong growth area for vast and all the products that come alongside other products we’re going to put on the software suite alongside those. Clover Capital is an area where we’ve haven’t executed as well as we should have, and we’ve been very, very conservative in the platforms, good opportunity there. So there’s there’s a lot of vast to still put on the platform and there’s better work to do with our current vast to get our customers to use it in a way that’s valuable to them. But that should drive the net outcome of that as you should have revenue growth in excess of volume growth.

Unidentified speaker, Interviewer: Yeah. And it’s I mean, it’s huge growth at Clover. One question we get increasingly as well, okay, Clover is growing high twenties and the total business is growing, I guess you’re guiding 12 to 15 this year. What’s happening with the non Clover? Is that declining?

Are you increasingly pulling non Clover clients into Clover? Like how is that balance?

Mike Lyons, CEO, Fiserv: Can non Clover grow? Yeah. Clover is about 4,000,000,000 in revenue, So it’s sizable, it’s still growing. They’re small businesses and if a small business wants Clover, get them Clover. We don’t deny anybody Clover, but we’ve been careful.

I guess it goes back over time with messaging between investors and the street that not to flood the system with back book conversions and we’ve left it open. 2026, we’ve talked about we’ve been testing back book conversions, but we haven’t done any broad based efforts around that. We’ve tested them inside The U. S. And outside The U.

S. And over time we’ve had some we’d learn stuff as we go and I think we haven’t done anything significant to date, but as you go into 2026, you’d see more focused efforts to convert Backbook into it. But again, there’ll be some base of customers where they don’t want a full Clover platform and they’re not going to use all the software services. But we think going forward Clover is clearly the platform for small businesses that will be Fiserv platform for a very long time. So eventually the back book will get to the Clover book.

And even more importantly on the Carrot Enterprise side of things, we continue to invest in Commerce Hub, which is the front end, which is the gateway for large business. We’ll eventually put Clover into Commerce Hub, so large enterprises can take advantage big companies, big merchants, they don’t use Clover, but over time you can do that. So again, there’s we’re not sitting here having drained the ideas for Clover growth. It’s good asset, you grow for a long time.

Unidentified speaker, Interviewer: Yeah. And maybe one last question, organic growth in merchant was 8% in Q1, full year guide is 12 to 15 Was there something in Q1 specifically like I know Argentina rates, prevailing rates came down from like a 100% to 30 year over year and they’re stable the rest of year. So maybe that helps like what gets it to 12% to 15 for the full year?

Mike Lyons, CEO, Fiserv: Yes, Argentina helps. There’s a we had the big termination fee in The Caribbean. You’ve got Clover obviously accelerating. Commerce Hub continues to grow, bring new merchants into Commerce Hub and the rest is just core organic growth. They’ve got it right, some of the comps get easier largely because Argentina.

Unidentified speaker, Interviewer: Yeah. So when we put it all together, I mean, seems like backdrop is, if anything, good. It’s quite good, right? Stable and good. The macro?

The macro, the just your backdrop in general, demand, etcetera.

Mike Lyons, CEO, Fiserv: Yeah. I think on the business side, we talked a lot about it. We did the Fiserv Small Business Index. You put your pitch out before the thing. This is our pitch for the Fiserv Small Business Index.

We want to get it like the ADP jobs index, but we put that out yesterday. May was basically in line up 3% year over year, it was basically in line with the 3% growth. Think it was 3.3% in May, ’3 point ’2 percent in April, so it was in line. First quarter was 4.3%, so 100 basis points down on the Fiserv Small Business Index quarter to quarter. Interestingly, we’ve gone through a long period of and we haven’t drawn any conclusions from this nor has the FSBI team, but we’ve gone through a long period where foot traffic has been up and average purchase has been down and this month it reversed itself.

Foot traffic was down and average purchase was up. So I don’t we caution about any we certainly haven’t drawn any conclusions to it, but it’s different from the last couple of months. So we took note of it.

Unidentified speaker, Interviewer: Yeah. Well, good. That’s all the time we have. But please join me in thanking Yeah. And clients.

Yeah. Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.