Tech provider FIS met client needs for technology, digital engagement and efficiency in the second quarter as its digital payments offerings expanded with business-to-business, FedNow, account-to-account and real-time capabilities.

BIGGER PICTURE: Technology providers, including FIS, Fiserv and ACI Worldwide, have made significant efforts in payments capabilities, specifically around FedNow with the pilot program and now post-launch execution.

At FIS, “We have a significant amount of banks currently testing and certifying for FedNow,” Chief Executive Stephanie Ferris said during today’s earnings call. “We have over 115 banks in the pipeline. We have the ability to ramp hundreds more in the coming quarters, depending upon demand.”

BY THE NUMBERS: FIS reported in Q2:

• Banking solutions revenue ticked up 1% year over year to $1.7 billion;
• Total revenue increased 1% YoY to $3.7 billion; and
• Merchant solutions revenue increased 1% YoY to $1.3 billion.

NOTEWORTHY: In July, FIS’ SaaS solution, Worldpay, launched Revenue Boost, which allows merchants to process card-not-present transactions, according to an FIS release.

Revenue Boost was in pilot from May 2022 through April 2023, and launched on July 25, according to the release.

FLASHBACK: FIS agreed to GTCR acquiring a majority stake in Worldpay in July, Ferris said in a July 11 call for investors.

“The board and management team conducted a rigorous evaluation process, determining that this new separation path is in the best interest of FIS’ shareholders and supersedes the value creation potential of a spinoff,” Ferris said during the July call.

The GTCR transaction is expected to close by Q1 2024. The next step is securing regulatory approvals, according to FIS’ Q2 2023 earnings presentation.

FIS launched Worldpay in September 2022.

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