Payment processor Fiserv reaped the benefits of growing merchant acceptance and payments opportunities in Q3 2022, with its adjusted revenue increasing 8% to $4.27bn.
Adjusted revenue increased 9% to $12.41bn over the first nine months of the year. Meanwhile, organic revenue growth was 11% in Q3, led by 14% growth in Fiserv’s acceptance segment, 11% growth in its payments segment and 1% growth in its fintech segment. The company is well on the way to reaching its FY 22 expectations, and is now expecting organic revenue growth of 11% for the full year.
Fiserv’s payments and network segment saw notable growth, with its adjusted operating margin increasing 1.9% to 45.9% YoY. The revenue increase was spurred by 18% credit active account growth in North America, as well as its US money transfer product Zelle, which saw 34% growth in transactions and a 48% increase in number of clients. The company cited a number of trends boosting its payments arm, including a growing addressable market from healthcare, education and government organisations.
Meanwhile, Fiserv’s merchant acceptance business saw 10% and 5% growth across merchant volume and transaction growth respectively. Its point-of-sale offering Clover saw 19% revenue growth, while its omnichannel commerce system Carat saw growth of 18%.
During the earnings call, the company said that an uncertain macro environment was driving merchants towards full-service providers such as Fiserv, as opposed to single-issue specialists. However, it said that FX volatility did have an impact across the company’s revenues, with Clover being an example of this.