Recently, Fiserv, Inc. (FISV) announced that Walmart (WMT) has implemented the CheckFreePay service of Fiserv. This service will enable customers to pay bills at all Walmart locations in the United States.
Customers can pay household bills, such as their utility, mobile phone, auto loan, insurance and credit card bills at any one of the retailer’s 3,755 domestic locations using the CheckFreePay service. The CheckFreePay service from Fiserv gives customers the ability to pay bills from more than 2,500 companies.
Fiserv is a leading provider of information management and electronic commerce systems for the financial services industry.
Fiserv also announced that Boca Raton-based Legacy Bank of Florida, which has approximately $224 million in assets, has become the 200th financial institution to install WireXchange from Fiserv, a flexible solution for completing end-to-end wire transfers.
The company had earlier reported better-than-expected results for the second quarter due to cost control activities undertaken by the management. Fiserv sold off a 51% stake in its insurance business. The economic slowdown has badly hit the company’s top line as prime institutions in financial services industry have gone kaput.
Nevertheless, management added that it expects positive growth in the second half of 2009 driven by an increase in spending by clients along with increase in core account processing, online bill payment and debit processing. Management expects internal revenue growth to come around (2%) – 1%. EPS is projected between $3.61 and $3.75.
Although there might not be a significant revival in the economic environment, we expect business conditions to improve in the second half as compared to the first half. The company continues to win new businesses and demand is expected to pick up in 2010. We maintain our Neutral rating on the stock.
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