Square shares rose in after-market trading Thursday, after the rising financial services star blew away earnings forecasts for the first quarter amid explosive growth in digital transactions. Revenue soared almost four times in the quarter to $5.057 billion from $1.381 billion last year. The FactSet analyst consensus called for $3.34 billion in the latest quarter. Profit totaled $39 million, or 8 cents a share, in the first quarter, swinging from a loss of $105.89 million, or 24 cents, a year ago. The analyst consensus called for a loss of 10 cents in the latest quarter.
First quarter net profit rose to $1.10 billion from $84 million a year earlier, and the company added 14.5 million net new active accounts, bringing its total user base to 392 million. Revenue grew 31% year over year in the quarter that ended Mar. 31, according to a statement. In the year-ago quarter, the pandemic fomented a surge in online shopping, helping to drive record payment volume for the quarter and the full year. On the company’s earnings call, CEO Dan Schulman pointed to cryptocurrency as a key growth engine for the company.
The Strawhecker Group (TSG) is proud to announce the results of its inaugural Omnichannel Provider of the Year Award! Read the press release.
Through an in-depth review and submission process, payments providers were asked to explain why their omnichannel solution provided the most seamless payment experience across in-store, online, and mobile channels.
“An integrated payment experience across all channels is critical as merchants continue to find ways to adapt and better serve their customers,” said Mike Strawhecker, President of TSG. “We are excited to honor Fiserv and Cybersource with our first ever Omnichannel Provider of the Year award.”
The big processor Global Payments Inc. announced early Tuesday it will acquire Zego Inc., a payments and technology provider for managers of residential real estate, in a deal valued at approximately $830 million. The company also announced an agreement to buy the PayOne acquiring business in Austria belonging to the French processor Worldline S.A. The two deals together will total about $1 billion, company officials said. Jeff Sloan, Global Payments’ chief executive, told equity analysts Tuesday the Zego deal should close later this quarter, while the PayOne acquisition will close in the second half of the year. “With Zego, we will enter one of the most attractive vertical markets in the world, real estate,” Sloan said.
Payments firm Flywire Corp on Monday made its paperwork for a U.S. listing public and revealed a 38% surge in revenue in the latest quarter as it benefits from strong remote working trends due to the COVID-19 pandemic. Flywire had confidentially filed to go public in March and could seek a valuation as high as $3 billion when it sets terms for the offering, Reuters reported in January. The Boston-based company, which was founded in 2011 and focuses on payments in the education, healthcare and travel sectors, is looking to ride on the rising interest in the fintech space.
Shopify is one of those companies that makes the modern internet go — it makes software that allows businesses of all sizes to set up online stores, and from there it can handle everything from shipping orders to financing loans for expansion. The company went public in 2015, and as online commerce has exploded during the pandemic, it’s been on a tear ever since — it just posted $988 million in revenue in the first quarter of 2021, a 110 percent increase from last year.
For many years, PaymentsSource has honored the women leading the transformation of the global payments industry. Today, we extend that honor to the next generation of leaders, with The Most Influential Women in Payments, Next. The honorees are women under 40 who have demonstrated a strong talent for leadership and an expertise in their respective fields. They also took on crucial responsibilities to help their organizations navigate the complexities of the pandemic, and set their companies on a path for continued growth.
May require account to read. DLocal, a payments startup, has confidentially filed for a U.S. initial public offering, according to people with knowledge of the matter. The Montevideo, Uruguay-based company is working with banks including JPMorgan Chase & Co. on a listing that could occur as soon as this year, one of the people said. Timing hasn’t been finalized and could still change. DLocal is set to be valued at more than $5 billion in any listing, the people said.
Chime might call itself the “fastest-growing fintech in the U.S.,” but it has agreed to stop referring to itself as a “bank,” per a new report out of American Banker. Evidently, the eight-year-old, San Francisco-based outfit was the target of an investigation by the California Department of Financial Protection and Innovation after Chime used “chimebank” in its website address, as well as used “bank” and “banking” elsewhere in its advertisements, according to the agency in a settlement agreement. As noted by AB, Chime made the decision to settle ahead of a deadline imposed by the regulatory body.
E-commerce giant eBay is looking at crypto as a payments option, CEO Jamie Iannone told CNBC Monday. It could preview the online auctioneer’s return to crypto since abandoning Facebook’s Libra stablecoin project in 2019. Iannone cited crypto as one form of new payment rails eBay is considering but did not give any specifics. He also said eBay is looking at how to get into the non-fungible token (NFT) game.
Macy’s has partnered with buy now, pay later (BNPL) firm Klarna to exclusively offer its “Pay in 4” solution across all Macy’s brands and websites, Klarna announced. “Klarna’s in-store option gives our (in-store) customers the same shopping experience they already enjoy online,” said Matt Baer, chief digital officer at Macy’s. “We’re excited to expand our partnership with Klarna to bring even more convenience to our shoppers, in-store.” Macy’s Inc. also owns Bloomingdale’s and Blue Mercury.
Less than five months after vaulting to a $1.6 billion valuation, Divvy, an expense reporting startup for small businesses, is in talks to be acquired. Bill.com, a cloud software-based platform that helps small and midsize businesses with back-office financial operations, is Divvy’s expected buyer, two sources tell Forbes. The companies may be planning to announce the deal as soon as Thursday, when Bill.com, which currently carries a market cap of about $12 billion, is scheduled to report first-quarter earnings.
Bitcoin may be taking another step toward mainstream adoption, CNBC has learned. For the first time, customers of some U.S. banks will soon be able to buy, hold and sell bitcoin through their existing accounts, according to crypto custody firm NYDIG. The company, a subsidiary of $10 billion New York-based asset manager Stone Ridge, has partnered with fintech giant Fidelity National Information Services to enable U.S. banks to offer bitcoin in coming months, according to the two firms.
Nigerian fintech startup Paystack has been relatively quiet since it was bought by fintech giant Stripe last October. The deal, worth more than $200 million, caused shockwaves to the African tech ecosystem and offered some form of validation to work done by founders, startups and investors alike. Today, the payments company, which powers businesses with its payment API and is actively present in Nigeria and Ghana, is announcing its official launch in South Africa.
The Electronic Transactions Association (ETA) released its “7 Guiding Principles for CBDC,” which should guide the consideration of the creation of a U.S. Central Bank Digital Currency (CBDC). ETA believes there is a common set of principles against which any proposed CBDC should be measured. As the federal government assesses a potential CBDC, it should carefully consider these principles and ensure that any proposal best serves the needs of consumers, furthers financial inclusion, preserves and strengthens the financial system, and ensures that consumers continue to have access to a robust and innovative array of secure banking and payment options.
The Consumer Financial Protection Bureau (CFPB) is looking into some of U.S. Bancorp’s consumer sales practices, according to the financial services company’s 10-Q filed this week. U.S. Bancorp said in the filing that it has responded to the CFPB and continues responding to the Bureau. The company noted in the filing that it continually faces “examinations, inquiries and investigations” in areas of increased regulatory scrutiny like consumer protection, third-party risk management, risk management and compliance.
Ripple CEO Brad Garlinghouse said the lack of clarity in US regulation of cryptocurrencies is “frustrating.” Known for the cryptocurrency XRP, the fintech company has been caught in a high-stakes legal tussle with the U.S. Securities and Exchange Commission since last year. In December, the SEC filed charges against the firm, Garlinghouse and a Ripple co-founder, alleging they raised more than $1.3 billion through an unregistered securities offering. Garlinghouse said the U.S. has yet to provide clear regulatory guidelines for cryptocurrencies unlike countries in Asia.
About 50% to 70% of all ransomware attacks in the U.S. are targeting small and medium-sized businesses, costing the victims an estimated total of $350 million in the last year, Secretary of Homeland Security Alejandro Mayorkas said Wednesday in a speech to the U.S. Chamber of Commerce. "The losses from ransomware are staggering. And the pace at which those losses are being realized is equally staggering," Mayorkas said, noting this is why DHS has made battling ransomware a priority.
The U.S. economy gained a disappointing 266,000 jobs last month, despite widespread forecasts that predicted a number that would top 1 million, according to the latest monthly employment report from the Bureau of Labor Statistics. The unemployment rate rose from 6 percent to 6.1 percent, contrary to expectations but still down from a historic peak of 14.8 percent last April, the highest level since the Great Depression. The highly anticipated monthly jobs report was expected to show strong payroll growth, with some analysts even predicting job gains beyond the 2 million mark.
Treasury Secretary Janet L. Yellen said higher interest rates might be needed to keep the economy from overheating given the large investments that the Biden administration is proposing to rebuild the nation’s infrastructure and remake its labor force. The comments, broadcast online on Tuesday at The Atlantic’s Future Economy Summit, come amid heightened concern from some economists and businesses that the United States is in for a period of higher inflation as stimulus money flows through the economy and consumers begin spending again.
Total U.S. retail sales sprung into another month of double-digit growth in April, according to Mastercard SpendingPulse, which measures in-store and online retail sales across all forms of payment. U.S. retail sales excluding automotive and gasoline increased 23.3% year-over-year in April, and 10.8% compared to April 2019. Online sales in April grew 19.9% and 95.6%, respectively, compared to the same periods. Retail sales continue to benefit from stimulus payments, coupled with warmer weather and broader reopening across the country.
FIS® , a global leader in financial services technology, reported its first quarter 2021 results. “FIS is off to a very strong start to the year, exceeding our expectations and increasing our outlook for the rest of the year,” said Gary Norcross, FIS chairman and chief executive officer. “Our continued focus on innovation and transformation is enabling our clients to modernize their environments and engage with their customers in dynamic new ways. I’m pleased that our unique value propositions will enable FIS to continue accelerating revenue growth and driving shareholder value as we advance how the world pays, banks and invests.”
“We returned to growth in the first quarter and delivered the fastest rate of sequential expansion across our markets since the end of 2019," said Jeff Sloan, Chief Executive Officer of Global Payments. "And our performance improved substantially as the quarter progressed with growth in each of our three segments in March. We also continued to deliver on our strategic priorities with today's announcements of our agreements to acquire Zego, a leading property technology company with a comprehensive resident management software and payments platform, and Worldline’s PAYONE Austrian POS acquiring business.
Shift4 Payments Inc. on Thursday reported record quarterly end-to-end payment volume and gross revenue as it notched what chief executive Jared Isaacman called a “strong first quarter.” Stronger performance in the company’s core hospitality market helped drive end-to-end volume to a record $8 billion, with most growth coming from new and larger merchants, Isaacman said during an early morning conference call with equity analysts to discuss the company’s quarterly results. Gateway volume, at $150 billion in March, was “close to prepandemic levels,” Isaacman said.
EVO Payments, Inc. announced its first quarter 2021 financial results. For the first quarter ended March 31, 2021, reported revenue was $106.2 million compared to $111.2 million in the prior year, a decrease of 4%. On a currency neutral basis, revenue for the first quarter decreased 6%. On a GAAP basis for the quarter ended March 31, 2021, net loss was $2.8 million compared to a net loss of $13.6 million in the prior year. Adjusted EBITDA increased 7% to $33.7 million for the quarter, and on a currency neutral basis, adjusted EBITDA increased 6%.
American Express Global Business Travel, a joint venture partially owned by the credit card giant, is planning to acquire Egencia, Expedia's corporate-travel arm. Expedia will become a shareholder in and enter into a long-term commercial agreement with Amex Global Business Travel as part of the agreement, the two companies said in a statement Tuesday. Financial terms of the deal weren’t disclosed. “Expedia Group strongly believes in the robust return of travel, including in the corporate space,” Ariane Gorin, president of Expedia Business Services, said in the statement.
Fiserv, Inc., a leading global provider of payments and financial services technology solutions, is proud to announce it has been named The Strawhecker Group’s (TSG) inaugural Omnichannel Provider of the Year. This award is part of TSG’s Payments Excellence Awards, which recognize organizations in the industry that embody the vision, dedication, and demonstration of excellence in the payments world. TSG selected Fiserv as the Omnichannel Provider of the Year based on the flexibility of the Clover® platform for SMB merchants, and multifaceted capabilities of Carat for large enterprises.
To give restaurant customers more flexibility and control of how they order and pay, Elavon, a global payments provider and subsidiary of U.S. Bank, and BookingTek, a London-based hospitality software provider, have partnered to introduce a new smartphone application – TableRes. The app is available free-of-charge to medium and large restaurant chains and food service businesses in the United States and Canada that process payments with Elavon. TableRes will provide contactless guest experiences in all types of restaurants (from fast food to full service) and allow guests to order and pay at the table without interaction with a server. It will also provide direct pre-order and pre-payment functionality for delivery, pickup at the counter or curbside and drive-thru.
More than eight in ten consumers (86%) say that their payments habits have changed since the start of the pandemic, with 59% trying a new payment method for the first time – a number which rises to 77% among the 18- to 24-year-old age group. That’s according to new research released by leading specialized payments platform, Paysafe, in which 8,000 consumers were surveyed for the company’s latest Lost in Transaction report.
Payoneer announced that it is collaborating with eBay to enable sellers in select countries to get paid for their sales on eBay’s core marketplace. eBay has teamed up with Payoneer as part of its mission to modernize its marketplace, removing complexities and creating a more streamlined payment experience for sellers around the world. With the help of Payoneer, eBay sellers will benefit from faster access to funds, greater flexibility managing multi-currency payments and expanded reach by enabling sellers to list on multiple international eBay sites.
Early Warning Services, LLC, the network operator behind Zelle®, announced $106 billion was sent through the Zelle Network® on 392 million transactions during Q1 2021. Year-over-year sent payment values increased by 74%, while payment transactions increased by 61%. Zelle® Small Business continues to be one of the fastest growth areas for the Zelle Network®, with transactions increasing 180% year-over-year.
Datacap Systems Inc., leading hardware and processor-agnostic omnichannel payments provider, has partnered with Loyalzoo, a digital loyalty card service for small/medium size retailers and eateries, to offer Datacap’s POS partners an option for memberships with recurring payments. The Loyalzoo membership platform is available for new and existing partners utilizing Datacap’s eCommerce integration, Pay API, available as part of Datacap’s NETePay Hosted™ omnichannel payments platform.
TransNational Payments, a wholly owned subsidiary of Celero Commerce and leading provider of merchant payment solutions across the United States, announced a partnership with BOLT ON TECHNOLOGY (“BOLT ON”) to provide auto repair and maintenance shops an integrated payments platform that allows their vehicle owners to utilize more advanced payment methods for services rendered. TransNational will improve the customer experience for shop owners by allowing them to accept any form of payment from any device anywhere, all integrated into BOLT ON’s software.
Paytronix Systems, Inc., the most advanced digital guest experience platform, today announced that it is making it easier for consumers to order food directly through Google Search and Google Maps. Now, an integration with Paytronix Order & Delivery enables brands to offer consumers ordering via their Google accounts. Participating restaurants receive online orders for pickup or delivery directly from Google. Guests simply search for the restaurant and tap the “Order Online” button on the restaurant’s Business Profile on Search and Maps.
As First American’s ISO business continues to grow exponentially, the company welcomes Jerry Faith as Sales Manager. In this capacity, Faith will focus on new partner acquisition, matching integration-focused ISOs with First American’s payment technology. Faith joins First American from TransPay Solutions and BMT Retail Systems, where he has helped business owners reduce costs associated with payroll processing, HR services and business lending through integrated point of sale solutions.