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Total System (TSS) Extends Multi-Year Contract with Degussa

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Total System Services, Inc. has extended its existing commercial payments agreement with Degussa Bank in Germany. Per the multi-year agreement, Total System would provide a broad range of products and services to the bank’s  corporate and business clients.

Terms and conditions of this long-term agreement were not released.

Total System’s aggressive inorganic initiatives have helped it maintain its growth trajectory. The acquisition of NetSpend in Jul 2013 made it one of the largest program managers of dollars reloaded in prepaid cards. The company enhanced its footprint in the U.S. prepaid card industry and bolstered long-term growth through a diversified portfolio. In Apr 2016, the acquisition of TransFirst, a major U.S. merchant solutions provider, substantially boosted its merchant acquiring business through the enhancement of technology, scale and distribution capabilities.

These efforts have raised shareholder confidence, which is evident from the favorable share price movement. Year to date, the stock has gained 24%, outpacing the Zacks categorized Financial Transaction Services industry’s rally of 19%.

Total System provides a vast range of card options that include products of major card companies, Mastercard, Inc (MA - Free Report) and Visa Inc (V - Free Report) . The company also offers fraud and risk management services. Degussa Bank is already famous for its low cost yet efficient offerings for its commercial clients. Since the beginning of its partnership with Total System in 2010, Degussa Bank has been leveraging on its market-leading technology, proven delivery track record of success and stellar reputation in the commercial card industry and quality service.

Total System had started its operations in Germany years ago. The country has always been an important market for it because of the vast untapped opportunities.

With the recent Degussa Bank contract renewal and other recent renewals in the German market, the company expects to cater greater value to itsclients in the region.

Zacks Rank and Key Picks

Total System presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Another stock worth considering in the Financial Transaction Services industry is QIWI PLC (QIWI - Free Report) sporting a Zacks Rank #1. Its current-year estimates have been revised upward in the past 60 days. Moreover the stock delivered positive earnings surprises in last four quarters with an average beat of 23.61%.

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