Total System Services Inc. (TSS - Free Report) executed a couple of business developments early this week to strengthen its merchant acquiring services portfolio. However, markets remained indifferent toward these moves, as shares dipped about 0.1% to $30.58 on Thursday.
Firstly, Total System announced an extension of its alliance with Europe’s leading KBC Bank Ireland (KBC). This Irish bank is operational for over 40 years now, offering commercial and personal retail banking services to customers across Europe, Southeast Asia and the U.S.
Last year, Total System had allied with KBC to process its debit card portfolio, which was launched in 2013 and acknowledged as one of the best bank cards in the industry. Further, KBC introduced credit cards in Mar 2014, which will also be processed by Total System.
Alongside, Total System protracted its partnership with Canadian Tire Financial Services to process its cards portfolio and offer other related value-added services. Subsequently, the company will support KBC and Canadian Tire’s card portfolios with its enhanced customer service to handle dispute and chargebacks as well as monitor fraud and strategy management.
These multi-year contracts blend well with Total System’s integrated merchant acquiring platform, which provides high-class customer experience through its advanced technology and point-of-sale authorization capacities.
Moreover, the renewed contract will continue to enhance Total System’s payment volumes and a number of processed transactions, thereby supporting its financials. Total System has been catering to its clientele more effectively by offering customized and flexible processing solutions to all its partners, primarily in the merchant acquiring space.
Furthermore, the company continues to explore new market opportunities while retaining the older ones. 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.
Total System presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the financial services sector include Xoom Corp. , Euronet Worldwide Inc. (EEFT - Free Report) and Global Cash Access Holdings Inc. . All these stocks have a Zacks Rank #2 (Buy).