Total System Spreads UK Operations with Metro Bank Tie-Up
In an attempt to expand its debit card portfolio in the UK, Total System Services Inc. TSS recently entered into a strategic alliance with Metro Bank.
Metro Bank has a history of over 100 years of operation in the fields of private, personal and business banking.
Per the deal, Total System will process Metro Bank’s debit and credit card portfolio through its TS2 platform. The partnership also complements the company’s strategy to bolster its relationship with the bank’s customers as it plans to offer risk management, fraud avoidance and other support services in these cards.
Overall, the alliance is expected to strengthen the card processor’s client base and payment processing network in the UK. Moreover, the new contract should enhance Total System’s payment volumes and the number of processed transactions, thereby supporting its financials.
The company also has tie ups with other banks such as First Hawaiian Bank, KBC Bank of Ireland and Columbia State Bank. Total System has been strengthening its clientele by offering customized and flexible processing solutions to all its partners across the globe, primarily in the merchant acquiring space. Additionally, the company is making efforts to tap opportunities in the recovering markets through high-grade technology.
However, Total System is consistently challenged by strong competition, currency fluctuations and stringent regulatory reforms, which have affected its pricing and credit allocation. Yet, we believe that a healthy business model, strategic acquisitions, alliances and technical competence will consistently drive growth within Total System.
While Total System carries a Zacks Rank #2 (Buy), some other players ranked equally in the financial sector are Equifax Inc. EFX, Global Payments Inc. GPN and JetPay Corporation JTPY.
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