U.S. Bancorp’s (USB Quick QuoteUSB - Free Report) subsidiary, Elavon, recently acquired Electronic Transaction Systems Corporation (ETS) -- a Virginia-based financial technology company. The acquisition is likely to supplement Elavon’s payment processing services. Financial terms of the deal remain undisclosed.

Electronic Transaction Systems, which operates in 23 countries, provides electronic processing services such as credit and debit card processing, POS check, electronic funds transfer (EFT) and ATM driving.

Elavon offers a variety of payment solutions to businesses ranging from e-commerce to mobile wallets and is recognized as a top global payment provider. Management is optimistic about the acquisition and considers Electronic Transaction Systems’ business approach to be in line with the company’s strategy. Further, this integration will make Elavon’s electronic platform safer and simple to use.

Ed Vaughan, CEO of Electronic Transaction Systems, noted, “We are thrilled to join with Elavon and become part of U.S. Bank. We have worked with U.S. Bank for the 20 years that we’ve been growing our company. There was simply no better choice than U.S. Bank, who knows us and shares our vision for the future.”

Of late, banks and financial institutions have entered into agreements with payment providers to enhance their payment offerings. In this era of digitization, most customers are opting for digital payment alternatives, which make it crucial for banks to offer diversified payment solutions to retain businesses.

Among others, Deutsche Bank (DB Quick QuoteDB - Free Report) acquired a stake in Modopayments in July 2018, while Citigroup (C Quick QuoteC - Free Report) entered into a partnership with PayPal (PYPL Quick QuotePYPL - Free Report) to expand its mobile offerings in 2017.

Shares of U.S. Bancorp have gained 4.8% in the past three months, outperforming 2.7% growth recorded by the industry.



Currently, U.S. Bancorp carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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