Will the FIS Worldpay merger impact your credit union?
It will take time to figure out precisely how much this impacts credit unions but there is little doubt that at some point it will. On Monday, FIS announced it was acquiring payment processor Worldpay in the latest move to alter the landscape in the rapidly consolidating payment processing industry.
In a refreshingly honest press release announcing the deal, Gary Norcoross, the President and CEO of FIS explained that “scale matters in our rapidly changing industry.” The press release explained that the combination of Worldpay with FIS will help facilitate an omni-channel technology platform which can combine both payment processing and traditional core operating capabilities.
Let’s face it, increasingly who is executing a payment is as important as the institution holding the individual’s money to begin with. For example, Apple Pay is nothing more than a payment platform but it’s a lot more important to younger people than the account they choose. In addition, prepaid debit cards are becoming such an important part of the banking landscape that regulations are finally set to take effect on April 1st, imposing consumer protection obligations on these payment devices. More on that in an upcoming blog post.
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