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Fidelity National's (FIS) New Tool, Lab to Aid Payments Space

·4 min read

Fidelity National Information Services, Inc. FIS recently introduced a central infrastructure payment solution RealNet Central to ease the efforts of central banks in integrating digital-first and real-time payments into a country’s economy.

The newly-launched solution links businesses, consumers, financial institutions and government entities of a country with domestic and international real-time networks. This, in turn, is likely to pave the way for a ramped-up adoption of digital payments and offer an opportunity to countries to upgrade their payments infrastructure or construct a new real-time payments network.

Concurrent with the RealNet Central launch, FIS unveiled a Central Bank Digital Currencies (CBDC) Virtual Lab to enable countries to incorporate CBDCs into their economy. A CBDC is usually issued and regulated by a country’s monetary authority or the central bank.

The lab, rolled out by FIS in partnership with California-based leading payments modernization platform M10 Networks, empowers central banks, commercial banks and other financial participants to conduct experiments, pilots and accelerate live CBDC implementations. The lab is backed by an advanced technology that can process more than a million transactions in a second.

The dual initiatives undertaken by FIS reinforce continuous efforts to pursue investments in innovative technologies and solutions to upgrade the payments infrastructure amid a booming digital economy. Also, the digital expertise possessed by FIS is clearly demonstrated through the recent move as it requires significant efforts and time in launching solutions similar to RealNet Central to facilitate real-time payments across borders.

Per Worldpay from FIS’ 2022 Global Payments report, 72% of the population in the world already has or will very shortly have access to real-time payments. Therefore, backed by an innovative digital solutions suite, Fidelity National seems well-placed to capitalize on the prevailing scenario.

The CBDC Virtual Lab seems a well-timed launch considering the emergence of several digital currencies, which hold prospects amid the rising Internet penetration and availability of advanced technologies. Digital currencies also bring several unbanked individuals under the ambit of a flourishing digital economy.

As part of its efforts to bolster the digital solutions suite, FIS rolled out the Guaranteed Payments solution in June 2022. This is expected to provide merchants with higher e-commerce transaction approval rates, thus waiving off the financial liabilities of chargebacks related to fraudulent purchases.

Shares of Fidelity National have inched up 1% in the past six months against the industry’s decline of 6.5%.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & Key Picks

Fidelity National currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Business Services space are Blucora, Inc. BCOR, Huron Consulting Group Inc. HURN and NV5 Global, Inc. NVEE. While Huron Consulting sports a Zacks Rank #1 (Strong Buy), Blucora and NV5 Global carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Blucora outpaced estimates in three of the last four quarters and missed the mark once, the average being 15.99%. The Zacks Consensus Estimate for BCOR’s 2022 earnings suggests an improvement of 5.1% from the year-ago reported figure. The same for revenues suggests growth of 2.1% from the year-ago reported number. The consensus mark for BCOR’s 2022 earnings has moved 1.6% north in the past 30 days.

Huron Consulting’s earnings outpaced estimates in each of the trailing four quarters, the average being 19.41%. The Zacks Consensus Estimate for HURN’s 2022 earnings suggests an improvement of 25.7% from the year-ago reported figure. The same for revenues suggests growth of 17.8% from the prior-year reading. The consensus mark for HURN’s 2022 earnings has moved 2.5% north in the past 30 days.

The bottom line of NV5 Global outpaced estimates in each of the last four quarters, the average beat being 16.96%. The Zacks Consensus Estimate for NVEE’s 2022 earnings suggests an improvement of 9% from the year-ago reported figure. The same for revenues suggests growth of 13.5% from the year-ago actuals. The consensus mark for NVEE’s 2022 earnings has moved 3.7% north in the past 30 days.

Shares of Blucora, Huron Consulting and NV5 Global have gained 6.1%, 41.9% and 31.8%, respectively, in the past six months.


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Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
 
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