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Global Payments to Extend Credit Card Services to Truist

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Global Payments Inc. (GPN - Free Report) announced that its Issuer Solutions unit, Total System Services (TSYS) has inked a long-term deal with Truist Financial Corporation (TFC - Free Report) . However, terms of the deal have been kept under wraps. Notably, Global Payments had teamed up with TSYS last year.

Truist, which is the sixth-largest commercial bank in the United States at present, was formed by the combination of BB&T Corp. and SunTrust Banks in December 2019.

Apart from leveraging innovative payment solutions of TSYS, the agreement will also provide Truist access to the TS2 processing platform of TSYS. This, in turn, will help Truist to transform its existing suite of credit card programs and boost payments business.

While Truist is anticipated to commence its transformation-related activities in late 2021, it is expected to make use of TSYS’ issuer processing services in 2022.

Moreover, Global Payments has been gaining traction for quite some time on the back of its innovative payment solutions, advanced local-market expertise and strong global foothold. Last year in October, Citi’s Treasury and Trade Solutions (TTS) tied up with Global Payments to enhance payments acceptance for institutional merchants. In the same month, it also collaborated with Canada’s cooperative financial group, Desjardins Group. This agreement strengthened the presence of Global Payments in the Canadian market. Notably, the company already has solid base in the country courtesy of innovative payment solutions.

Furthermore, this recent deal with Truist is likely to boost the results of Issuer Solutions segment of Global Payments going forward, which contributed 25.6% to the company’s first-quarter 2020 top line. Also, the bottom line improved year over year despite coronavirus woes. Not only this, the first-quarter results surpassed the projections provided in the company’s early-April announced preliminary results.

Shares of the Zacks Rank #4 (Sell) company have gained 21.9% in a year, compared with the industry's growth of 12.2%. We believe that the company’s strong fundamentals are likely to sustain its existing momentum going forward.

Stocks to Consider

Some better-ranked stocks in the finance space are MarketAxess Holdings Inc. (MKTX - Free Report) and Virtu Financial, Inc. (VIRT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

MarketAxess Holdings and Virtu Financial surpassed estimates in the last reported quarters by 3.7% and 35.76%, on average, respectively.

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