Fiserv: Clover Revenues Are Up 29% in 2024
Fiserv’s momentum with its Clover point of sale technologies continues to help underpin revenue growth, while management charted a path for its partnership with Apple, enabling new Apple Pay functionalities. CEO Frank Bisignano said on the conference call with analysts that clients have been “engaging in some of our traditional businesses as new ways to […]
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Fiserv’s momentum with its Clover point of sale technologies continues to help underpin revenue growth, while management charted a path for its partnership with Apple, enabling new Apple Pay functionalities.
CEO Frank Bisignano said on the conference call with analysts that clients have been “engaging in some of our traditional businesses as new ways to add and retain their own customers.” In merchant acquiring, banks are adding the service “as a way to grow with small and medium sized business customers and choosing Fiserv” for solutions including Clover, which has seen revenues surge by 29% year to date. There are nearly 900 financial institutions (FIs) offering merchant processing services to their small business clients “and thousands more who can still benefit from doing so,” said Bisignano.
The company’s earnings supplementals reveal that Fiserv’s Merchant Solutions business grew by 9% year over year, to $2.4 billion on an adjusted basis and 28% on an organic basis. Within that segment, small business-related revenues surged 13%, with 29% year to date Clover revenue growth. Clover’s annualized GPV stands at $313 billion, up 17%. Overall small business volume growth, Fiserv said in its materials, was 4% higher, and enterprise transaction growth was 8% higher.
Within the Financial Solutions segment, organic revenue growth was 8%. In that segment, digital payments growth, on a revenue basis, was 8% to $987 million.
Digital Payments and Cash Flow Central Momentum
In digital payments, said the CEO, Cash Flow Central has seen momentum, as the firm signed wo more deals with larger banks — and noted that the offering “will go live this quarter and the pipeline remains full.”
With detail into the ongoing efforts with Apple, he said the partnership will enable new Apple Pay functionality with Fiserv’s next-generation solutions — including pay with points, where the loyalty points that reside on the card accounts of Fiserv’s issuer clients can be redeemed for a transaction in the Apple Pay wallet at checkout. A second solution is installment loans on credit cards, billed as a new feature that presents the consumer with the choice to pay for a purchase in a set of installments when using Apple Pay at checkout.
“With Apple, we will move this installment loan feature into the checkout flow, giving the consumer choice at the point of purchase. Having this functionality at the point of sale from a digital wallet can drive greater cart conversion, card usage and spending power,” said Bisignano.
Looking ahead, the revenue outlook is unchanged at 15% to 17% organic growth.
Shares of Fiserv were up 2% at the start of trading on Wednesday.
Bisignano said on the call that there will be additional restaurant features launched with Clover “that target our sweet spot in casual dining to enhance table management, kitchen operations, inventory, and cost management.”
CFO Robert Hau said on the call that outside the U.S., in the EMEA region, “the general tone of business is improving as inflation is easing and consumer confidence begins to rise across the region.” Within the U.S., he said, “we continue to see strong demand from clients,” particularly for faster payments. In the second quarter, the company signed 32 FIs to FedNow, bringing Fiserv’s total signups to nearly 300.
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