This has been a busy week for earnings releases, and among the big payment processors, FIS and Fiserv have recently filed their Q2 2021 results – with positive news from both. Both are good indicators of economic recovery, especially in the US market.
FIS Q2 2021 results
FIS reported a quarter described by CEO Gary Norcross as “exceptional”, with a 17% increase in revenue to $3.5bn.
Its Merchant Solutions division was a particularly strong driver of growth, increasing by 45% year-on-year, or 9% compared to 2019. This is despite its Travel & Airlines vertical remaining muted, although the company did report some recovery. FIS has also now achieved synergies related to its acquisition of Worldpay, which forms part of this division.
The positive results have prompted FIS to increase its revenue guidance for FY 2021 by $250m to $13.9-14bn.
Fiserv Q2 2021 results
Fiserv stepped up its performance in Q2 with a 17% revenue increase, a considerable increase from the 4% rise it saw in Q1, to $4.05bn.
This continued to be driven by ecommerce, with its Merchant Acceptance seeing 36% growth in the quarter, aided by 21% growth in global ecommerce volume and 35% growth in global merchant volume. Its cloud-based point-of-sale solution Clover in particular saw 96% growth in gross payment volume.
Q2’s positive results have caused Fiserv to modestly improve its projections for the year, with its internal revenue growth now projected to reach 10-12%.