Time New York: Mon 24 Jun 15:17 pm  |  Save 15% on H&R Block Online


CardConnect-Lavu Tie Up for Integrated Payment Solutions


Shares of First Data Corporation FDC have fared well in a year’s time. The stock has gained 26.9%, against the industry’s decline of 2.2%.

Recently, First Data subsidiary CardConnect announced a partnership with mobile point-of-sale system for restaurants, Lavu.

The partnership involves integration of CardConnect’s platform powered by Bolt P2PE with Lavu’s mobile point-of-sale. The combined offering known as LavuPay uses advanced payment devices featuring PCI-Validated Point-to-Point Encryption (P2PE) and tokenization to provide users secure payment processing as well as advanced data breach protection.

Aimed at streamlining payment processing for restaurants, LavuPay is a single source solution built on developer-friendly APIs and equipped with contactless as well as mobile payment acceptance capabilities.

Rob Nathan, executive vice president, CardConnect, stated, “The opportunity to work closely with Lavu is one we’re excited about. Together, we’re pairing the best payment and restaurant management solutions with unparalleled customer service to drive maximum value for our customers.”

Our Take

We believe that the collaboration will help First Data boost the Global Business Solutions segment, which includes debit and credit card transaction fees, fees paid for providing processing, loyalty and software services as well as sales and leases of point-of-sale devices.

Performance in the segment was particularly strong in the last reported quarter with revenues of $1.45 billion, which grew 18% year over year on a reported basis, 14% on a comparable accounting basis and 8% on an organic constant-currency basis.

Zacks Rank & Key Picks

Currently, First Data carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the broader Business Services Sector include ICF International, Inc. ICFI, WEX Inc. WEX and Paychex, Inc. PAYX, each carrying a Zacks Rank #2 (Buy).

The long-term expected EPS (three to five years) growth rate for ICF International, WEX and Paychex is 10%, 15%, and 8.4%, respectively.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.