Global Payments Inc. topped earnings expectations on Monday and announced a new partnership with Amazon.com Inc.’s Amazon Web Services, stating that the bank would offer more cloud-centric offerings to customers and give the company its own Will allow to expand geographic reach.
Monday afternoon trading is up 1.2%.
Through Amazon’s partnership with AMZN,
AWS will create a cloud-based processing platform for global payment card issuers. Global Payments chief executive Jeff Sloan said the system “leveled the playing field for large financial institutions” by giving them access to technology-oriented offerings that provide them with a more modern consumer experience and improve features Can help you move more quickly. .
Sloan told Marketwatch that things like the rollout of contactless payment options and better digital banking experiences “can all be done better, faster and cheaper in the cloud.” He added that the AWS system “allows large financial institutions globally to use the same technology that startups do.”
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From Global Payments’ own business point of view, the AWS partnership gives the company the opportunity to move into new markets, as it was previously limited to only geographies where it could build physical data centers. Sloan said that overall, the company can more than triple the company’s address market in issuer solutions.
Global payments beat income and revenue expectations (and perhaps even partially) for the second quarter despite the epidemic, and pointed to a gradual improvement from month to month over the period, while some aspects of the business grew year-over-year. -Years have returned. Year increase in June.
In addition, trends remained “stable” throughout July and slightly improved from what we saw in June, “President Cameron Breed said on Global Payments’ earnings call.
Sloan told Marketwatch that e-commerce and the omeconnel category saw 16% growth during the second quarter, excluding travel. He revealed on the earnings call that this share of the business is 20% of merchant revenue.
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He also said that he believes that global payments are the “largest deployer of NFC technology”, referring to near-term communications technology, which allows contactless payments, during the COVID-19 crisis. Raised as buyers look for ways to avoid exchanging cash. Or handing people their credit cards due to concerns about viral spread.
“I think you’re likely to move for two to three years of demand and I’m not seeing it any less,” said Sloan about contactless trends as well as a boom in e-commerce adoption during the epidemic. said in. He said that it can be difficult to get consumers to change their behavior in terms of payment preferences but people are unlikely to change old habits, as they have once changed.
Read: MasterCard’s earnings dip as COVID-19 limits spending
While COVID-19 has generated a growing interest in tap payments, Sloan said the crisis may pose a preference for contactless payments such as physical cards that do not require facial recognition, something the modern way. Phones do for your mobile purse. In the epidemic age, facial recognition is more difficult to activate since the masked nose and mouth are blocked.
Global Payments, which merged with fellow financial technology company Total Systems Services in September, earned an adjusted $ 1.31 stake for the second quarter, down from $ 1.51 a share a year earlier, but ahead of $ 1.21. There was a portion that analysts forecast to be surveyed by FactSet. . Revenue increased from $ 935 million to $ 1.67 billion.
The shares have gained 11.3% over the past three months as the S&P 500 SPX,