On Tuesday, payments services company, Global Payments, Inc announced that it will buy rival Total System Services Inc (TSYS) for about US $ 21.5 billion in shares, increasing its reach in a competitive and fast-growing industry.
The agreement, the largest acquisition of Global Payments and the third major purchase in the sector this year, occurs while the technology payment companies are consolidated in their fight against the competition of banks, which are venturing into digital payments, and of new companies in the financial technology sector.
The global payments market will reach US $ 3 billion per year in revenue by 2023, as customers increasingly change cash payments for digital payments, according to consulting firm McKinsey.
After the agreement is sealed, Global Payments will process more than 50,000 million annual transactions worldwide, which will make it one of the main players in the technology payment sector, the company said in a statement.
In March, Fidelity National Information Services Inc. agreed to buy Worldpay for approximately US $35 billion, months after Fiserv Inc announced the acquisition of First Data Corp for US $22 billion.