Fiserve continues m-payment consolidation

IT services company, Fiserv has agreed to buy privately-held electronic payment firm CashEdge for $465 million, continuing a consolidation trend in the industry, reports The Wall Street Journal.

The Toronto Star says Fiserv has recently focused on person-to-person electronic payments, and CashEdge's products will allow Fiserv to expand its presence in this area.

CashEdge is expected to enhance Fiserv's capabilities in areas such as account-to-account transfer, account opening and funding, small business payments, and person-to-person payments, states Reuters.

The deal, which will be completed by September, is hoped to expand Fiserv's workforce in the US and India.

Bank Systems and Technology reveals Sanjeev Dheer, co-founder, CEO and president of CashEdge, says the payments industry has reached a pivotal point in consumer and small business payments.

“The merger of our efforts will significantly enhance our ability to deliver innovative solutions to our financial institution clients.”

The financial technology space is moving towards fewer vendors, as banks look to work with a smaller number of companies, according to a Wall Street Journal media statement.

Visa, earlier this month, revealed it would buy privately-held Fundamo for about $110 million, as part of a larger strategy to grow its mobile payments business.