As it pursues more fintech clients, the payments processor sees B2B and commercial cards as areas ripe for expansion
Global Payments is increasingly expanding its customer base beyond banks, soliciting business and signing deals with fintechs, Global Payments Chief Executive Jeff Sloan highlighted during the payment processor’s third-quarter earnings conference call this week.
The company has recently signed agreements with expense management fintech Ramp and virtual corporate card company Extend, he said in speaking to analysts Monday about the earnings report. “As we think about expanding beyond traditional financial institutions” to fintechs and startups, the business-to-business (B2B) and commercial card areas are a “good place” for that expansion, Sloan said.
Ramp, which is based in New York, is used by corporations to manage expenses and recently added a cross-border bill pay capability for businesses, while Extend, also based in New York, handles virtual credit card distribution.
Global Payments also signed a deal with another fintech, EedenBull, for a multiyear commercial card agreement, Sloan said. EedenBull is based in Norway.
For the third-quarter, the company’s net income fell 2% to $290.4 million, on a revenue increase of 3.8% to $2.29 billion, the release said.
Further details about Global Payments’ fintech deals were not disclosed by the company. A spokesperson for the Atlanta-based company didn’t respond to a request for comment.
Sloan noted “momentum we are seeing across our B2B portfolio, which includes technology centered on virtual card solutions, a vast commercial card footprint, massive distribution partnerships with the world's leading financial institutions, data and analytics, market-global leading payroll technologies.’’
Global Payments agreed in August to buy EVO Payments for $4 billion. At the same time, the company announced it was selling the consumer unit of its debit card Netspend business, but retaining the Netspend B2B business and building on it.
Global Payments has received Hart-Scott-Rodino antitrust clearance for both transactions and expects them to close in the first quarter, according to the earning release.
By Jonathan Berr on Nov 3, 2022
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