Fidelity to Enhance Embedded Payments for SMBs with Payrix Deal

Fidelity National Information Services, Inc. (NYSE: FIS) has revealed plans to acquire Atlanta-based Payrix to strengthen its embedded payments strategy. The terms of the deal remain undisclosed so far.

Fintech company Payrix specializes in enabling SaaS-based platforms to embed payments and financial technology into their offerings to enhance the payments experience for small- and medium-sized businesses (SMBs).

With this deal, Fidelity will be able to develop its embedded finance capabilities in addition to its e-commerce offerings to small- and medium-sized businesses. Also, the company plans to combine its portfolio of banking and payments assets with Payrix’s advanced embedded payments solutions to create new experiences for businesses of any size.

The President of Fidelity, Stephanie Ferris, said, “Bringing the Payrix capabilities inside FIS enables us to continue our journey of serving e-commerce as well as platform companies. The acquisition of Payrix is an excellent proof point of FIS’ ability to unlock the value of our broad portfolio of solutions as companies of all sizes rely on FIS as a destination for innovation to advance how the world pays, banks and invests.”

FIS’ Earnings

The company’s EPS for the fourth quarter of 2021 is estimated at $1.9. Fidelity’s earnings history has been impressive as it beat estimates in all the quarters of 2020 and 2021. Given the positive trend, the company will likely beat estimates again in the fourth quarter.

Overall, the analysts are cautiously optimistic about the stock with a Moderate Buy consensus rating based on 14 Buys and 5 Holds.

Hedge Fund Trading Activity

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Fidelity is currently Very Negative, as the cumulative change in holdings across all 6 hedge funds that were active in the last quarter was a decrease of 7.2 million shares.

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