Latest news with #merchantSolutions
Finextra
29-05-2025
- Business
- Finextra
Global Payments to sell payroll unit for $1.1bn
Global Payments continues to simplify its business, agreeing to offload its payroll unit to fintech Acrisure for $1.1 billion. 0 The divestiture is the latest step Global Payments has taken to position itself as a pure play merchant solutions provider, shedding non-core businesses. In April it agreed a blockbuster deal to buy Worldpay from GTRC and FIS for $22.7 billion while offloading its Issuer Solutions business to FIS for $13.5 billion. Last year, it also sold its medical software business AdvancedMD for $1.13 billion. "I am pleased with the progress we are making with our transformation program as we move aggressively to simplify our business and enhance value for shareholders," says Cameron Bready, CEO, Global Payments. In connection with the payroll transaction, Global Payments has entered into a mutual referral agreement and long-term commercial partnership with Acrisure in which it will continue delivering human capital management and payroll offerings to its merchant customers. Proceeds of the deal - set to close the second half subject to regulatory approval - will be used to return capital to shareholders.
Globe and Mail
20-05-2025
- Business
- Globe and Mail
SHOP Surges 34% in a Month: Should You Buy the Stock Now or Wait?
Shopify SHOP shares have risen 33.6% over the past month compared with the broader Zacks Computer & Technology sector's growth of 22.6%. The Zacks Internet - Services industry has appreciated 13.6% in the same time frame. The outperformance can be attributed to robust growth in its merchant base, driven by its merchant-friendly tools, including Shopify Payments, Shop Pay, Shopify Pay Instalments, Sign in with Shop and the Shop App. These offerings are enabling Shopify to attract merchants, even amid challenging economic conditions. In the first quarter of 2025, Merchant Solutions' revenues were $1.74 billion and accounted for 73.7% of Shopify's total revenues. On a year-over-year basis, merchant revenues increased 29%, driven by strong Gross Merchandise Volume (GMV) and increased penetration of Shopify payments. GMV in the first quarter of 2025 was $74.75 billion, which increased 22.8% year over year. Same-store sales growth from existing merchants, a higher number of merchants on SHOP's platform and strong international growth drove GMV in the reported quarter. One Month Performance SHOP Benefits From an Expanding Portfolio SHOP's expanding portfolio has been a major growth driver for its success. Its merchant-friendly tool Shop Pay stands out as a key driver. The app processed $22 billion in Gross Merchandise Value in the first quarter of 2025, up 57% year over year. Large brands like Birkenstock, Lilly Pulitzer, and Johnny Was adopted Shop Pay, enhancing Shopify's portfolio. Shopify's expanding footprint in the B2B space has also been noteworthy. In the first quarter of 2025, it saw 109% growth in B2B Gross Merchandise Value, marking an impressive performance in a growing market for the platform. Building on this momentum in April 2025, Shopify announced a suite of new partner solutions tailored for B2B businesses. These solutions offer advanced storefront solutions, seamless back-office integrations, and native apps designed to speed up digital commerce for manufacturers and distributors. These solutions aim to streamline operations and enhance the B2B buying experience with faster time-to-market and lower costs. Shopify's investment in AI-driven tools, such as Shopify Sidekick, and Shop Inbox, is helping merchants improve customer engagement and streamline operations. By using AI, Shopify enhances its platform's power and user-friendliness. A Rich Partner Base Aids SHOP's Prospects Shopify's rich partner ecosystem has been a major growth driver. An expanding partner base, which includes TikTok, Roblox RBLX, PayPal, Snap, Pinterest, Criteo, IBM, Cognizant CTSH, Alphabet 's GOOGL cloud computing platform Google Cloud and Adayen, has further expanded its merchant base. SHOP's partnership with Cognizant and Alphabet's Google Cloud aims to help retailers modernize their commerce platforms and deliver personalized, real-time shopping experiences. Combining Shopify's platform, Alphabet's cloud computing platform, Google's cloud technology, and Cognizant's expertise, this partnership supports retailers in scaling globally and unlocking new business value through advanced technologies like generative AI. In its commerce integration partnership with Roblox, Shopify has opened new avenues for merchants to reach a younger and more engaged audience. This collaboration with Roblox allows Shopify to strengthen its position in the digital commerce space. SHOP's 2025 Earnings Estimates Revisions Are Steady The Zacks Consensus Estimate for SHOP's 2025 earnings is currently pegged at $1.40 per share, which has decreased 4% over the past 30 days, indicating year-over-year growth of 7.69%. The consensus mark for SHOP's 2025 revenues is currently pegged at $10.85 billion, indicating year-over-year growth of 22.24%. SHOP Stock Overvalued SHOP stock is currently overvalued, as the Value Score of F suggests a stretched valuation at this moment. The stock is trading at a premium, with a forward 12-month Price/Sales of 12.14X compared with the Internet - Services industry's 4.98X. Price/Sales (F12M) Image Source: Zacks Investment Research Conclusion: Hold SHOP Stock for Now SHOP is benefiting from strong growth in its merchant base and expanding footprint. Its focus on improving its client base is a key catalyst. Hence, investors who already own the stock may expect the company's growth prospects to be rewarding over the long term. However, stiff competition in the e-commerce marketplace against the likes of Alibaba and Amazon, challenging macroeconomic uncertainties, persistent inflation and cautious consumer spending are headwinds. Ongoing tariff uncertainties, along with a stretched valuation, is a concern. Shopify currently carries a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable time to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report Roblox Corporation (RBLX): Free Stock Analysis Report
Reuters
06-05-2025
- Business
- Reuters
Global Payments adjusted profit rises as consumer spending remains steady
May 6 (Reuters) - Global Payments (GPN.N), opens new tab reported a rise in first-quarter adjusted profit on Tuesday, bolstered by consistent revenue growth from its merchant solutions business. WHY IT'S IMPORTANT Strong wage growth and low unemployment helped consumer spending levels in the reported quarter, despite some customers reducing discretionary spending due to U.S. President Donald Trump's tariff-related inflation concerns and growth uncertainties. Consumer spending levels in an economy directly affect the earnings of payment technology companies such as Global Payments. CONTEXT Global Payments has intensified its focus as a pure-play payments processor business in recent times through acquisitions as it looks to attract larger corporate clients. The company agreed to buy rival Worldpay from FIS (FIS.N), opens new tab and private equity firm GTCR for $24.5 billion in a three-way deal, announced last month. As part of the deal, Global Payments will sell its issuer solutions unit, which offers card processing and account services, to FIS for $13.5 billion. BY THE NUMBERS Net profit attributable, also on an adjusted basis, to the company rose to $665.3 million, or $2.69 per share, in the three months ended March 31, compared with $634.2 million, or $2.46 per share, a year earlier.
