Clover gross payment volumes up 50% year over year


For Fiserv, e-commerce tailwinds continue to support results, with Clover increasing double-digit percentage points year-over-year.

In terms of key numbers for its fourth quarter earnings, the company’s 11% revenue growth lifted revenue to $4 billion, slightly above consensus. Adjusted earnings per share, at $1.57, were two cents better than expected.

Additional material released by the company on Tuesday (February 8) alongside results show that in the merchant acceptance segment, revenue increased 18%, to $1.7 billion, and global merchant volumes and transaction growth increased by 22% and 18% respectively in the quarter. The segment saw 19% e-commerce growth in the quarter, according to the company.

Clover grew 50% in the fourth quarter to reach an annualized growth rate of $201 billion. ISV volume growth exceeded 64% in the quarter.

In the Payments and Network segment, organic revenue growth was 8% to $1.5 billion. Debit transactions gained 14%; Fiserv saw 71% growth in Zelle transactions in the quarter.

FinTech segment revenue growth was 4% during the period, to $771 million.

During the conference call with analysts, the CEO Frank Bisignano said that “demand for omnichannel solutions has persisted into 2021, demand for our integrated solutions, such as disbursements and reimbursement activation, EBT and other digital capabilities, has reached an all-time high” .

Payouts, he added, “have become an important part of the consumer experience across many verticals during the pandemic.”

Bisignano said on the call that Clover’s growth will occur both in the United States and then in its global expansion.

Within the issuer sector, according to comments on the call, the company saw “notable strength” in active general-purpose accounts, which are now above pre-pandemic levels. Bisignano said “our cards business continues to generate above-average growth for the segment driven by strength in digital risk solutions, debit network volumes and growth in debit transactions.”

Financial director Bob Ha said on the conference call that for the quarter, card services and digital payments outpaced the segment’s organic revenue growth rate. Hau noted on the call that ISV volume this quarter through Clover Connect was up 64% year-over-year and 53% over a two-year CAGR. The company signed 45 ISVs in the last quarter.

“Credit came in slightly below the segment average and bill payments continued to be a headwind. Within card services, debit transactions grew 14% in the quarter,” a- he told analysts.

As reported this month, Fiserv has signed an agreement to buy cloud-native banking solution Finxact, Inc.

Read more: Fiserv Acquires Finxact for Digital Banking Acceleration

Bisignano said on the call that the agreement “will not only increase our ability to enrich and accelerate the delivery of digital solutions that we offer to our existing customers, but will also expand our solutions to include large financial institutions, FinTechs , banking as a service, and integrated financing opportunities.



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