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Global Payments' (GPN) Processing Services to Aid Banco Carrefour

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Global Payments Inc. (GPN - Free Report) recently unveiled that its Issuer Solutions unit Total System Services (TSYS) inked a multi-year deal with Brazil-based Banco Carrefour. However, terms of the deal have been kept under the wraps.

Shares of Global Payments gained 0.4% on Jun 4.

Banco Carrefour, the bank integrated with an enhanced financial products suite, is owned by Carrefour Brasil, a well-established retailer of Brazil. Notably, both Global Payments and Banco Carrefour have been sharing a strong bond for more than a decade. Over the course of time, they have collectively rolled out enhanced financial products, daily discounts and diversified installment purchase options.

Through the renewed relationship, TSYS will continue to offer an array of processing and support services for the credit card and digital accounts of Banco Carrefour. Further, TSYS will continue to manage Banco Carrefour’s on-us acquiring transactions.

Besides upgrading Banco Carrefour’s digital payment offerings, the recent deal is likely to be beneficial for Global Payments as well. It will bolster the company’s digital capabilities and global customer base. The move also highlights its efforts to strengthen the Latin American footprint.

As a leading worldwide payments technology company, Global Payments has always remained active in catering to the underserved areas. Case in point, TSYS had extended its helping hand to Banco Carrefour last year to roll out a prepaid and virtual card program. The move was intended to assist the latter’s unbanked customers amid the COVID-19 induced financial uncertainties in Brazil.

Moreover, the addition of TSYS in 2019 has not only empowered Global Payments with the much-needed scale but also boosted its presence in several new markets. Several contract wins and renewals have reinforced partners’ and customers’ trust on the company’s innovative capabilities. These initiatives have been providing an impetus to the Issuer Solutions segment’s revenues, which contributed 24.2% to the company’s consolidated revenues during first-quarter 2021.

Furthermore, Global Payments has been acquiring or joining forces with several organizations for capitalizing on the current prospects in the digital payments space. The company inked a deal to acquire the real estate technology company Zeto in May 2021. The move is likely to offer Global Payments with enhanced software and digital commerce portfolio, thereby strengthening its footprint across the real estate space. Its collaboration with Google Cloud in 2021 further highlights its efforts in boosting digital offerings.

Other companies offering innovative digital payment solutions across the globe include Mastercard Incorporated (MA - Free Report) , Visa Inc. (V - Free Report) and American Express Company (AXP - Free Report) .

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Shares of this Zacks Rank #3 (Hold) company have gained 2.3% in a year compared with the industry's growth of 7.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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