First Data Corporation (FDC - Free Report) yesterday announced that it has entered into a partnership with payments technology provider — BlueSnap.
The partnership will integrate BlueSnap’s All-in-one Payment Platform with First Data’s global and local payments solutions suite.
Per the deal, First Data will act as the primary provider of any kind of acquiring, processing, and settlement of payment card transaction and related services for BlueSnap. The duo will work to make BlueSnap’s e-commerce services available to First Data’s distribution partners, including some of the world’s largest banks.
So far this year, shares of First Data have gained 34.8%, significantly outperforming the 4.8% rise of the industry it belongs to.
Considering the notable changes in transaction techniques in recent years and increasing demand for updated and innovative payment methods, we believe the collaboration with BlueSnap is a prudent business move by First Data.
Notably, the company has been active on the partnership front to expand its product portfolio and geographic footprint. The latest in the series is the alliance of CardConnect (a First Data Company) with Lavu to offer restaurants and bars a modernized payment solution. This follows the partnership with Huifu Payment Ltd in September to offer global e-commerce solution in the Chinese market.
The latest tie-up is expected to help First Data strengthen its Global Financial Solutions (GFS) segment. The segment provides financial institutions, which include bank and non-bank issuers, a wide variety of technology solutions. Performance of the segment was strong in the last reported quarter with revenues improving 3% year over year on a reported basis, 2% on a comparable accounting basisand 4% on an organic constant currency basis.
Zacks Rank & Stocks to Consider
Currently, First Data carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some top-ranked stocks in the broader Business Services sector include WEX (WEX - Free Report) , ICF International (ICFI - Free Report) and Paychex (PAYX - Free Report) , all carrying a Zacks Rank #2 (Buy). The long-term expected earnings per share growth rate for WEX, ICF International and Paychex is 15%, 10% and 8.4%, respectively.
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