May 06, 2021 at 05:40PM

Fidelity National Information Services (FIS) reported results that showed organic growth as banks moved to modernize their infrastructure and merchants accommodated the continued shift by consumers to spend across digital channels.

In terms of headline numbers, earnings of $1.30 outpaced the Street by a nickel, and consolidated revenues of $3.2 billion were up 4 percent, and outpaced the Street, slightly.

In supplemental materials released by the company, Merchant Solutions first-quarter revenues were up 3 percent to $966 million, and organic revenue was up 1 percent, driven in part by eCommerce gains. Pandemic-related headwinds dragged on revenues by about 5 percent, management said.

Banking Solutions gained 7 percent on the top line to $1.5 billion, with organic revenues up 6 percent. And the company’s Capital Markets Solutions segment was up 5 percent to $625 million.

The company said that new sales growth topped 17 percent in the Banking Solutions unit; surged 76 percent in Merchant Solutions, and was up 44 percent in Capital Markets. Banks have been shifting their efforts to modernize infrastructure, said the company; global eCommerce sales have surged by a 2x multiple year over year.

Eyeing Organic Growth In Merchant Solutions 

Within the Merchant Solutions segment, according to guidance, organic revenue growth is expected to surge to 30 to 35 percent year on year.

Volume growth is solid, management said on the call, and as reopenings and vaccinations continue, international contribution to that segment should improve as well.

Travel-related contributions (down 60 percent amid the pandemic) should improve, and will be a tailwind, with volumes for the full year up single-digit to low double-digit percentages.

Revenue growth should also accelerate on the heels of demand for software as a service-enabled solutions and the migration to the cloud. Sales cycles into the banking segment have remained steady (in terms of days) despite the pandemic, said management.

Crypto-related banking related revenues were up by a multiple of 5x year over year, driven by banks’ desire to serve clients who want to hold crypto as an asset class. And, separately, the transaction count over the NAP Platform stood at 1.8 million transactions in the most recent quarter, up from 195 million in the year ago period.  APIs, according to the company’s supplementals, are enabling 4 million transactions daily.

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FIS Sees 76 Pct Growth In New Merchant Solutions Sales …

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