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Blackbaud (BLKB) Rolls Out Payment Terminal: Major Takeaways

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Blackbaud (BLKB - Free Report) recently announced the general availability of its latest solution — Payment Terminal.

Payment Terminal will enable organizations, mainly arts and cultural, to receive contactless payments made through chip-embedded credit cards.

The solution can also help Blackbaud Altru customers to utilize EMV technology-backed card readers. These card readers are capable of encrypting transactions to make payments secure and lower instances of fraudulent activities.

The solution will also accept payment from users who leverage digital wallets like Apple (AAPL - Free Report) Pay and Google Pay. Payment Terminal is capable of processing transactions three times faster compared with a magnetic swipe device, noted Blackbaud.

Blackbaud, Inc. Price and Consensus

 

Blackbaud, Inc. Price and Consensus

Blackbaud, Inc. price-consensus-chart | Blackbaud, Inc. Quote

 

Payment Terminal transactions can be reconciled with any other transactions made through Blackbaud Merchant Services, further added the company. 

Rise in Contactless Payment Solutions

The rapid surge in contactless payments is being driven by need for secure transactions as well as increasing proliferation of smartphone and wearable devices with integrated payment technologies.

According to data from Grand View Research, the worldwide contactless payments market is expected to witness a CAGR of 20.3% between 2021 and 2028.

The projection bodes well for Blackbaud’s latest payment solution. With gradual opening of zoos and museums across the globe, there is expected to be heavy footfall as people look to ramp up traveling after being confined in their homes for more than a year.

With the COVID-19 crisis still not completely abated, it is imperative to follow social distancing protocols. Payment Terminal solution will enable Blackbaud Altru clients to receive funds securely and minimize transmission risk for patrons and employees.

Blackbaud Altru is a cloud-based software solution that helps with mangement of admissions, fundraising, membership, merchandise and marketing among others. It is designed mainly for general admission organizations.

Blackbaud is engaged in providing cloud-based and on-premise software solutions and related services primarily for social good organizations.

The acquisitions of YourCause (2019) and JustGiving (2017) is enhancing the total addressable market for Blackbaud. The company, currently, has more than 45,000 clients across 100 countries.

However, the company’s’ performance is being hampered by coronavirus-led sluggish demand across small- and medium-sized businesses. Stiff competition in the cloud space along with a leveraged balance sheet are added concerns.

Zacks Rank and Key Picks

Blackbaud currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader technology sector worth considering are NVIDIA (NVDA - Free Report)   and Zoom Video (ZM - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for NVIDIA and Zoom Video is currently pegged at 17.6% and 15.6%, respectively.

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