Fiserv‘s acquisition of First Data points to the power of fintech and the threat it poses to more traditional payments and banking technology providers; fintech firms like Stripe and Square have put immense pressure on merchant processors like First Data to become more technology focused; Fiserv knows by acquiring First Data they can build a powerful competitor and the companies announced they will invest $500mn in development over the next five years; the move will allow Fiserv to offer a full suite of merchant products to their long list of banking clients and better position the company against competing, more nimble fintechs. Source.
