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Global Payments (GPN) to Offer Card Processing to UMB Bank

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Global Payments Inc. (GPN - Free Report) announced that its Issuer Solutions unit Total System Services (TSYS) recently inked a multi-year deal with the Kansas City, MO-based financial services company UMB Bank. However, terms of the deal are kept under the wraps.

UMB Bank, which is a subsidiary of UMB Financial Corporation (UMBF - Free Report) , has been offering US-based businesses and institutional clients a slew of commercial banking, personal banking and institutional banking services.

Through the latest deal, TSYS will provide an array of processing and support services for the consumer and commercial credit, debit and healthcare card portfolios of UMB Bank. This, in turn, is likely to digitally empower the platforms of UMB Bank and also add scalability to its business.

Shares of Global Payments have surged 73.1% in a year compared with the industry's growth of 58.5%.

Ever since TSYS was integrated into Global Payments in September 2019, the former has provided the latter with the much-needed scale and boosted its presence in several new markets. The innovative solutions coupled with constant technological investments pursued by TSYS resulted in multiple contract wins and renewals for the unit during 2020.

Notably, TSYS signed a multi-year payments pact with TD Bank Group last year for extending its processing and support services for TD Bank’s consumer and commercial card portfolios. The unit also inked a deal in 2020 to manage the credit card portfolios of Truist Financial Corporation (TFC - Free Report) . The company further renewed its agreement with Wells Fargo during the same period for delivering card processing and support services.

These deal wins are consistently providing a boost to the Issuer Solutions segment’s revenues, which accounted for 26.7% of the company’s consolidated revenues during 2020. Despite reduced transaction volumes due to the COVID-19 pandemic that dampened the segment’s revenues to some extent, acquired operations of TSYS led to higher segmental revenues that increased to more than three-fold last year.

Moreover, Global Payments has been partnering with several organizations for capitalizing on the current prospects in the digital payments space. The company’s recent collaboration with Google Cloud bears testament to this strategy with the deal aiming to bolster the company’s Merchant Solutions business through streamlining of operations and curtailment of operating costs. Its tie-up with Amazon Web Services (AWS) last year was intended to upgrade its core issuing platform for providing innovative payments solutions.

The company currently has a Zacks Rank #4 (Sell).

Stock to Consider

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Diebold Nixdorf has a trailing four-quarter earnings surprise of 261.88%, on average.

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