Total System Services Inc. (NYSE:TSS) recently renewed its payments agreement with Advanzia Bank S.A. in order to keep processing Advanzia’s consumer credit card portfolios. This apart, Total System is likely to provide additional supporting services to Advanzia, such as fraud and risk management, verification and contactless card support.
Total System has grown meaningfully over the years through a number of strategic acquisitions, mergers, alliances and partnerships. In the previous month, the company signed a long-term agreement to provide debit processing services for Virgin Money (LON:VM) customers in the U.K.
Year to date, the Total System stock has lost 3.1%, whereas the Zacks categorized Financial Transaction Services industry that has gained 4%. Nonetheless, the company’s strong inorganic growth is likely to have a favorable impact on the stock price in the near future.
Advanzia, the largest credit cards issuers in Luxembourg, has been a prized client of Total System since 2006. Advanzia hasa fast-growing portfolio of MasterCard credit cards across the Luxembourg, German, French and Austrian markets, and specializes in online business transactions. Hence, the decade-long relationship between the companies would be further strengthened by the aforesaid deal alongsideenhancing Total System’s reach and boosting its value proposition among customers.
On the other hand, Advanzia is likely to benefit from Total System’s options-driven platform, which would enable the former to grow and operate in a number of markets across Europe. Management of Advanzia also expects Total System’s global recognition to facilitate its card portfolios to grow rapidly. Total System’s TS2 platform should boost Advanzia’s expansion plans by enabling the latter to maintain its leadership in the industry where it operates.
Zacks Rank and Stocks to Consider:
Total System presently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the finance sector that warrant a look include Global Payments Inc (NYSE:GPN) , MasterCard Inc (NYSE:MA) and WEX Inc (NYSE:WEX) . Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Global Payments provides payment solutions for credit cards, debit cards, electronic payments, and check-related services. The company recorded positive surprises through out last four quarters with an average beat of 7.07%.
WEX provides corporate card payment solutions in North and South America, the Asia Pacific, and Europe. The company recorded positive surprises through out last four quarters with an average beat of 9.27%.
MasterCard provides transaction processing and other payment-related products and services in the United States and internationally. It posted positive surprises in all of the last four quarters with an average beat of 8.56%.
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