Financial services technology provider Fiserv is deploying AI to drive productivity and sees growth opportunities in the point-of-sale and real-time payments segments. 

“Our investment in technology is really around new product development, improved service and the ability to deliver the next dollar of revenue at a better incremental cost by investing in productivity … and AI allows us to do more of that,” Chief Executive Frank Bisignano said today during the company’s first-quarter earnings call.

Gross payment volume for the fintech’s point-of-sale (POS) device, Clover, grew 19% year over year to $274 billion in Q1, according to the company’s earnings report. Revenue from Clover devices increased 30% YoY, the earnings report stated. 

The Milwaukee-based company launched a kitchen display system and ordering kiosks for its restaurant division last year and plans to roll out a new Clover device called the Compact, Bisignano said. 

Fiserv is seeing strong demand for Clover in Germany and the Netherlands and will move into the Brazil and Mexico markets in the second half of the year, he said. 

THE BIG PICTURE: Fiserv is seeing increased adoption of digital and real-time payments channels. 

Transaction growth on its Zelle payment channel grew 45% in Q1, Bisignano said.  

Fiserv reported digital payment revenue of $920 million, up 5% YoY. 

“A second example that’s still emerging is FedNow and RTP … where we signed more than 500 financial institutions to provide access to these real-time realms,” Bisignano said. 

BY THE NUMBERS: In Q1, Fiserv reported; 

• Adjusted revenue of $4.5 billion, up 7% YoY;  
• Operating income of $1.2 billion, up 26% YoY; and 
• Net income of $752 million, up 30% YoY. 

OF NOTE: Fiserv acquired Brazilian payments service provider Skytef in October for an undisclosed amount. The acquisition allows Fiserv to “strengthen its distribution network in the country,” according to a company release at the time. 

The company spent $37 million on mergers and acquisitions activity in Q1, down 22% YoY, according to the earnings reports. The report did not specify how much of that was related to the Skytef purchase. 

FORWARD LOOK: Fiserv will explore additional M&A deals in 2024, Bisignano said. 

The company’s “ability to generate cash flow, investing in our business, and the ability to deploy capital” positions Fiserv to take advantage of M&A deals, he said. 

“While we have tremendous capacity on our balance sheet and could do deals, we’re making sure that what we see is of good value and brings value to our shareholders before we go ahead and strike on it,” Chief Financial Officer Bob Hau, said on the call. 

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