Fiserv is delving into embedded finance, with more business on the way, the CEO of the payments processing behemoth said in a Wednesday earnings call.
Executives emphasized a recent deal to provide embedded finance services to DoorDash drivers. CEO Frank Bisignano also singled out the acquisition of banking services company Payfare, which he hopes will help bring in more major customers like the food delivery service.
Embedded finances refers to financial services woven into non-financial products such as smartphone apps and other software tools, allowing for seamless access to banking or payment services.
Milwaukee-based Fiserv has “a pipeline of other embedded finance opportunities,” Bisignano told investors during prepared remarks on Wednesday’s earnings call, without elaborating.
The company’s partnership with DoorDash — which was announced in October — lets the gig company’s delivery drivers access banking services from a smartphone app. Fiserv’s December acquisition of Payfare — the payments processor reportedly paid $140 million for the banking services company, according to Reuters — should help the company offer those services to more companies, Bisignano said.
“The growing connections between businesses and financial institutions are a key part of the Fiserv story,” he said during prepared remarks.
President Donald Trump nominated Bisignano to lead the Social Security Administration on Dec. 4. Fiserv announced his replacement — former PNC Financial Services President Michael Lyons — on Jan. 23, but said Bisignano would remain with the company until June 30 unless he is confirmed by the Senate earlier. Lyons will report to Bisignano in the meantime.
Fiserv partners with some third parties to provide embedded finance capabilities to customers like DoorDash, Bisignano said in response to a question from an analyst, but the purchase of Payfare will help the company do more of that work in-house.
“We feel it’s a good add to the overall capability that we have,” Bisignano said of the Payfare acquisition.
Fiserv reported revenue of $5.25 billion for the fourth quarter, an increase of about 7% from the $4.92 billion in revenue it reported in the same quarter in 2023.
The company reported net income of $948 million in the quarter, up 6.5% from the $889 million it reported in the year-ago quarter.
