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Fidelity (FIS) and Affirm Unite to Drive Merchant Revenues

Fidelity National Information Services, Inc. FIS recently announced its multi-year partnership with Affirm Holdings, Inc. AFRM to integrate Adaptive Checkout in Worldpay. Affirm is a payment network which uplifts customers and assists merchants in driving growth. Fidelity’s partnership with Affirm will enable its merchants to offer suitable customers monthly payments and bi-weekly options in a seamless way.

This move will aid Fidelity National in boosting its top line in the future. The company derives part of its revenues from transaction processing fees paid by merchants. This revenue stream is recurring and will rise further as the number and value of transactions increase after the above-mentioned integration. Merchants will benefit from fresh sales opportunities and sources of revenue. Adaptive Checkout will add to the merchant’s existing offering to customers and act as a major differentiator.

This partnership highlights Fidelity’s unwavering focus on integrating innovative solutions and thus growing its business. Fidelity will continue to invest significantly in strategic growth endeavors to boost revenues and amplify its holistic market. This partnership is a relief for customers who demand transparent and flexible options. Customers can now get payment plans that are customized per their requirements that too with no late or hidden charges.

Pay-over-time options are inevitable for companies working in the transaction services space. Affirm’s solution will make an underwriting decision on a real-time basis and offer payment options to eligible customers accordingly. As a result, customers will have multiple payment options.

Price Performance

Shares of Fidelity have gained 0.4% in the quarter-to-date period against the 0.7% decline of the industry.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & Key Picks

Fidelity currently has a Zacks Rank #3 (Hold).

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Some better-ranked stocks in the Financial Transaction Services space are Remitly Global, Inc. RELY and Paysafe Limited PSFE. Each of these companies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Remitly Global’s 2023 earnings indicates a 7.4% increase from the prior-year reported number. Also, the consensus mark for revenues for the year indicates 36.8% growth.

The Zacks Consensus Estimate for Paysafe’s 2023 earnings is pegged at $2.2 per share, which witnessed two upward estimate revisions over the past 60 days against none in the opposite direction.

PSFE’s earnings beat estimates in three of the last four quarters and met the mark once, the average surprise being 190.5%.

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Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report

Remitly Global, Inc. (RELY) : Free Stock Analysis Report

Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report

Paysafe Limited (PSFE) : Free Stock Analysis Report

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Zacks Investment Research