Expanding its merchant acquiring services portfolio, Total System Services Inc. (TSS - Analyst Report) announced a long-term alliance with Texas-based Anovia Payments. However, the terms of the partnership were not revealed.
Overall though, Total System plans to manage the payments of Anovia, who deals with any form of single-source payments through cash in person, online or while travelling. With a rich experience of 75 years, Anovia has established itself in the industry with a high-class technology platform to help its clients procure money through smooth, transparent and secure means.
The alliance blends well with Total System’s integrated merchant acquiring platform that offers a high-class customer experience through its upgraded technology and point-of-sale authorization capacities. Moreover, the new contract will enhance Total System’s payment volumes and a number of processed transactions, thereby supporting its financials.
Total System has been strengthening its clientele by offering customized and flexible processing solutions to all its partners, primarily in the merchant acquiring space. So far in 2013, the company has bolstered its contract portfolio by the processing contract attainment from KeyBank, LINK, Nationwide Building Society, Qatar National Bank, KBC Bank Ireland and Payment Alliance International, among others.
Further, in an attempt to gain edge in the peer group, Total System has been diversifying its service portfolio to tap sound growth opportunities in the prepaid card industry. In this context, the company acquired NetSpend Holdings in July this year. The acquisition is expected to be accretive to operating leverage and core synergies, also validated by the recently raised guidance.
Overall, we believe such inorganic growth strategies bode well for Total System’s long-term growth, the fruits of which are likely to be reflected in the financial results of the upcoming quarters.
Along with Total System, Fleetcor Tech Inc. (FLT - Snapshot Report) carries a Zacks Rank #1 (Strong Buy). Other strong performers in the financial sector include XOOM Corp. and Official Payments Holdings Inc. , both of which carry a Zacks Rank #2 (Buy).