30 May 2019
Posted in Press Release
Global Payments merger with TSYS reflects globalisation trend in the payments industry, says GlobalData
Following the news that Global Payments is merging with TSYS for $22bn, Bhavika Shah, Payments Analyst at GlobalData, a leading data and analytics company, offers her comments:
“Global Payments’ merger with TSYS marks the third mega-deal in the payments industry since the beginning of 2019. This move is part of a recent trend by merchant acquirers to increase globalisation of their services in order to better compete in the omni-channel, e-commerce, and digital payment spaces. Payments were previously driven primarily by cards, but globalisation in consumer payments – especially online – means alternative tools are seeing increased usage.
“Indeed, GlobalData’s Online Consumer Payments Analytics shows that since 2011, card-based online payments have been declining in terms of their share of online payments in favor of alternative tools, which exceeded a 50% share of the e-commerce market in 2018.
“Global Payments and TSYS as a combined company makes strategic sense. It will be able to provide merchants with fully end-to-end payment acceptance services, as well as offering merchant services at a larger global scale. Consumers will benefit from these consolidation deals by being provided more choice at checkout. We can expect these new giants to start pushing smaller players out of the global payment acceptance market – and as globalisation filters down to smaller merchants, out of domestic markets too. This will not be the last merger we see in this space.”