Global Payments

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Global Payments Inc.
TypePublic
NYSE: GPN
S&P 500 Component
IndustryPayment processing
Founded2000; 21 years ago (2000), as a National Data Corporation subsidiary
2001; 20 years ago (2001), spun off from parent company
HeadquartersThree Alliance Center
Atlanta, Georgia, U.S.
Key people
M. Troy Woods
(Chairman of the Board)
Jeffrey S. Sloan
(CEO)
Cameron M. Bready
(President)
Paul M. Todd
(CFO)
RevenueIncrease US$ 7.4 billion (2020)[1]
Increase US$ 893 million (2020)[2]
Increase US$ 605 million (2020)[3]
Total assetsIncrease US$ 44.2 billion (2020)[4]
Total equityIncrease US$ 27.4 billion (2020)[5]
Number of employees
24,000[6] (2020)
SubsidiariesTSYS
Websitewww.GlobalPayments.com
Footnotes / references
[7]

Global Payments Inc. is an American company that provides payment technology and services to merchants, issuers and consumers.[8] The company processes payments made through credit cards, debit cards[9] and digital and contactless payments.[10]

In June 2021, the company was named to the Fortune 500.[11]

History[]

Global Payments was founded in 1996 and spun off from National Data Corporation, its former parent company, in 2001.[12] Global Payments has been an independent, publicly-traded company on the New York Stock Exchange having the ticker symbol “GPN” since its spin off.

In 2009, it paid $75 million for United Card Service, Russia's leading credit card processing company.[13]

In 2011, Global Payments's United Card Service bought Alfa-Bank's credit card processing unit.[13]

In October 2012, it acquired the smaller Accelerated Payment Technologies for $413 million.[14]

In October 2014, it purchased Australian payment processing company Ezidebit for $305 million.[15]

In January 2015, it bought Payment Processing (also known as PayPros), a California company, for $420 million.[16]

In March 2015 Global Payments bought Realex Payments, an Irish based payments gateway services company for €115 million.[17]

On April 25, 2016, Global Payments completed the acquisition of Heartland Payment Systems[13] for $4.3 billion.[18] Both Global Payments and its subsidiary Heartland Payment Systems were among the leading credit card processing companies in 2016, according to Business Insider.[19] Its headquarters moved from Sandy Springs, Georgia to Atlanta, Georgia in 2016.[20]

In 2017, Global Payments initiated acquiring divisions of Active Networks.[21]

In 2018, Global Payments completed acquisition of AdvancedMD.[22]

In 2018, Global Payments completed acquisition of Sentral Education.[23]

On May 28, 2019, Global Payments announced a $21.5 billion merger with TSYS. The merger is expected to trigger a Federal Trade Commission investigation.[24]

Its largest deal to date would have been the reported merger with FIS (company), estimated around US$70 billion, but which fell apart at the last minute in December 2020. However, it is expected to be revisited in 2021.[25]

Services and operations[]

Global Payments provides payment services directly to merchants and indirectly through other financial organizations. Its technology-enabled services also support integrated payments, e-commerce, and omni-channel services.[9][10]

Through Total System Services (TSYS), its issuer processor business, Global Payments helps banks manage credit and debit card portfolios.[26]

Global Payments operates in more than 100 countries and serves 3.5 million merchants as well as 1,300 financial institutions.[27] The company processes more than 50 billion transactions per year.[28] After merging with TSYS in 2019, Global Payments has nearly 24,000 employees.[29]

In 2020, 63 percent of the company’s revenue was derived from Merchant Solutions [30] 26 percent from Issuer Solutions,[31] and 11 percent from the Business and Consumer Solutions segment,[32] which operates as NetSpend.[33] Eighty percent of Global Payments Merchant Solutions revenue was from North America, 15 percent was from Europe, and five percent was from Asia.[34]

Controversy[]

In 2012, a data breach at Global Payments affected 1.5 million credit and debit card numbers.[35][36] This breach eventually cost the company around $100 million.[37] In 2015, a technical fault with Global Payments's systems led to thousands of British businesses being unable to accept credit card payments on Valentine's Day weekend.[38]

References[]

  1. ^ "Fortune 500 Global Payments". Forbes. June 2, 2021. Retrieved August 10, 2021. Revenues ($M) 7,423.6
  2. ^ FORM 10-K (PDF) (Report). Global Payments. February 26, 2021. p. 32. Retrieved August 11, 2021. Year Ended December 31, 2020, Operating Income: $893,953 (dollar amount in thousands)
  3. ^ FORM 10-K (PDF) (Report). Global Payments. February 26, 2021. p. 32. Retrieved August 11, 2021. Year Ended December 31, 2020, Net Income: $605,100 (dollar amount in thousands)
  4. ^ FORM 10-K (PDF) (Report). Global Payments. February 26, 2021. p. 32. Retrieved August 11, 2021. Year Ended December 31, 2020, Total assets: $44,201,545 (dollar amount in thousands)
  5. ^ FORM 10-K (PDF) (Report). Global Payments. February 26, 2021. p. 32. Retrieved August 11, 2021. Year Ended December 31, 2020, Total equity: $27,487,044 (dollar amount in thousands)
  6. ^ "Global Payments (GPN)". Forbes. Retrieved 2021-01-15. Employees 24,000 ... As of May 12, 2020
  7. ^ "US SEC: Form 10-K Global Payments Inc". U.S. Securities and Exchange Commission. Retrieved March 1, 2018.
  8. ^ "Global Payments and TSYS to combine in 'merger of equals'". Atlanta Business Chronicle. May 28, 2019. Retrieved August 10, 2021. Combined, Global Payments and TSYS will provide payments and software services to approximately 3.5 million predominantly small to mid-sized (SMB) merchant locations and more than 1,300 financial institutions across more than 100 countries.
  9. ^ a b "Major Fintech Merger Speaks to Supremacy of Software in Age of Stripe, Square". Cheddar. May 28, 2019. Retrieved August 10, 2021. Global Payments is the fifth largest merchant acquirer in the U.S., meaning it processes credit and debit card payments for merchants.
  10. ^ a b "Global Payments Shows Glimmers of Optimism in the Face of Covid-19 Lockdowns". DigitalTransactions.net. May 6, 2020. Retrieved August 10, 2021. E-commerce processing is thriving as consumers stuck at home shift shopping patterns away from in-store purchases. The company’s ominichannel and e-commerce processing business was up about 10% last month, Sloan reported. The company has also seen a 30% jump in contactless payments year-over-year, Sloan said, though he did not give specifics. Companies are reporting higher contactless card usage as consumers avoid touching keypads at the point of sale.
  11. ^ "Fortune 500: Global Payments". Fortune. June 2, 2021. Retrieved August 11, 2021. The company provides payment technology and software services; in all, it facilitates transactions for more than 3 million businesses. Global Payments makes its debut on the Fortune 500 this year, buoyed by a stellar 2020 in which its revenue rose 51%, to $7.4 billion, as the pandemic encouraged more consumers to adopt cashless payment.
  12. ^ "Global Payments Timeline". Retrieved 2020-08-12.
  13. ^ a b c Dexter Filkins. "Was There a Connection Between a Russian Bank and the Trump Campaign? A team of computer scientists sifted through records of unusual Web traffic in search of answers". NewYorker.com. Retrieved 12 October 2018.
  14. ^ CNBC (2012-10-02). "Global Payments closes on APT acquisition". CNBC. Retrieved 2017-12-31.
  15. ^ Passmore, Daryl (2014-10-10). "Easy way to becoming a multimillionaire". The Courier-Mail. Retrieved 2017-12-31.
  16. ^ Whiteman, Lou (2014-01-24). "Global Payments Swipes Smaller Rival". TheStreet. Retrieved 2017-12-31.
  17. ^ "Global Payments Acquires Realex Payments".
  18. ^ Merced, Michael J. de la (2015-12-15). "Global Payments to Buy Heartland Payment for $4.3 Billion". The New York Times. ISSN 0362-4331. Retrieved 2017-12-31.
  19. ^ Meola, Andrew. "These are the leading credit card processing companies". Business Insider. Retrieved 18 November 2017.
  20. ^ Ibata, David (2016-07-06). "Global Payments moving HQ to Atlanta from Sandy Springs". The Atlanta Journal-Constitution. Retrieved 2017-12-19.
  21. ^ Jones, Donovan (2017-08-10). "Global Payments To Acquire ACTIVE Network Divisions From Vista Equity Partners". Seeking Alpha. Retrieved 2018-09-24.
  22. ^ "Global Payments Completes Acquisition of AdvancedMD". Retrieved 2018-09-24.
  23. ^ "Private Equity Hotshots and Deals". Retrieved 2018-12-28.
  24. ^ "Global Payment Merger with Total System".
  25. ^ "FIS, Global Payments Held Unsuccessful Talks to Merge". 20 December 2020.
  26. ^ "Global Payments Agrees to Buy Total System Services". Bloomberg. May 27, 2019. Retrieved August 10, 2021. Global Payments Inc. agreed to buy Total System Services Inc. in a deal valued at $21.5 billion, the payment industry’s third mega-merger of the year...Total System Services is what’s known as an issuer processor, meaning it helps banks manage their credit and debit card portfolios for everything from card authorizations to detecting fraud and calculating rewards.
  27. ^ "Global Payments Completes TSYS Merger and other Digital Transactions News briefs from 9/18/19". DigitalTransactions.net. September 18, 2019. Retrieved August 10, 2021. The merged company serves 3.5 million merchant locations and 1,300 financial institutions in more than 100 countries.
  28. ^ "Global Payments to buy TSYS for $21.5 billion in latest fintech deal". Reuters. May 28, 2019. Retrieved August 10, 2021. After the deal Global Payments will process more than 50 billion transactions annually across the world, making it one of the biggest players in integrated payment technology.
  29. ^ "TSYS, Global Payments merger complete; Management team announced". WRBL. September 18, 2019. Retrieved August 10, 2021. The new company has more than 24,000 employees.
  30. ^ "Will Global Payments (GPN) Sustain Its Earnings Streak in Q2?". Zacks.com. July 26, 2021. Retrieved August 11, 2021. Revenues of Global Payments’ biggest operating segment, which is Merchant solutions, (accounting for 63 percent of the company’s top line), are likely to have grown as a result of higher spending.
  31. ^ FORM 10-K (PDF) (Report). Global Payments. February 26, 2021. p. 37. Retrieved August 11, 2021. Year Ended December 31, 2020, Issuer Solutions: $1,981,435 (dollar amounts in thousands); 26.7% of Revenue
  32. ^ FORM 10-K (PDF) (Report). Global Payments. February 26, 2021. p. 37. Retrieved August 11, 2021. Year Ended December 31, 2020, Business and Consumer Solutions: $829,505 (dollar amounts in thousands); 11.2% of Revenue
  33. ^ FORM 10-K (PDF) (Report). Global Payments. February 26, 2021. p. 9. Retrieved August 11, 2021. Our Business and Consumer Solutions segment provides general purpose reloadable (“GPR”) prepaid debit and payroll cards, demand deposit accounts and other financial service solutions to the underbanked and other consumers and businesses in the United States through our Netspend® and other brands.
  34. ^ FORM 10-K (PDF) (Report). Global Payments. February 26, 2021. p. 77. Retrieved August 11, 2021. Merchant Solutions – Americas: $3,240,233; Europe: $614,747; Asia Pacific: $243,600
  35. ^ Pepitone, Julianne. "1.5 million card numbers at risk from hack". CNNMoney. Retrieved 2017-12-18.
  36. ^ Sidel, Robin; Johnson, Andrew R. (2012-03-30). "Data Breach Sparks Worry". Wall Street Journal. ISSN 0099-9660. Retrieved 2017-12-18.
  37. ^ "The 10 Biggest Bank Card Hacks". WIRED. Retrieved 2017-12-18.
  38. ^ Brooks-Pollock, Tom. "Global Payments: Thousands of firms left fuming after card payment glitch hits business on Valentine's Day weekend". The Mirror. Retrieved 18 November 2017.

External links[]

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