Pressure on Regulators Ramps up as Global Payments Announces Plans to Buy TSYS

29th May 2019

Global Payments has announced its intention to acquire TSYS in a $21.5 billion all-stock deal. The announcement comes after Fiserv’s deal with First Data, and FIS’ acquisition of Worldpay earlier this year. This deal continues the global trend of consolidation in the payments industry, with processors looking to increase volume and benefit from economies of scale.

We spoke with Mark Horwedel, Strategic Consultant at CMSPI:

“The third mega merger of the year between payments incumbents should come as no surprise to anyone. While many see this phenomenon as concerning to merchants, I don’t necessarily agree. It’s hard to imagine the payments environment in the U.S. being any more one-sided and unfair to merchants than it already is. All of the big banks set identical prices hiding behind the existing card scheme duopoly.

The pressure is really on the U.S. regulators to enforce, and promote a competitive cards market. With the right competition, we could see downward pressure on fees, BUT if history is anything to go by, the regulators are unlikely to do anything to benefit the merchant community.”

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