Summary
Fiserv Inc. (FISV) announced a significant realignment of its reportable segments, effective for the quarter ending March 31, 2024. This change aims to enhance operational performance by grouping businesses into two primary segments: Merchant Solutions and Financial Solutions. The Merchant segment will encompass products and services for businesses of all sizes, including small business solutions (like Clover®), enterprise solutions (like CaratSM), and processing services for third-party resellers. The Financial segment will focus on solutions for financial institutions, corporate, and public sector clients, covering areas such as banking, digital payments, and card issuing processing.
Key Highlights
- 1Fiserv is realigning its reportable segments into 'Merchant Solutions' and 'Financial Solutions' effective Q1 2024.
- 2This segment realignment is intended to improve operational performance and better reflect the company's integrated product and solution delivery.
- 3The Merchant segment will include businesses serving small and large businesses, as well as processing for third-party resellers.
- 4The Financial segment will cover a broad range of services for financial institutions, corporate, and public sector clients, including banking, digital payments, and issuing.
- 5Historical financial data under the new segment structure for 2023 and 2022 will be provided in Exhibit 99.1 to allow for comparable analysis.
- 6The company will begin reporting under the new structure with its Q1 2024 10-Q filing, with prior periods restated.
Frequently Asked Questions
Fiserv is realigning its reportable segments to enhance operational performance and better align with changes in its business, focusing on the delivery of its integrated portfolio of products and solutions to clients.
The new reportable segments are Merchant Solutions and Financial Solutions. A 'Corporate and Other' category will also exist for unallocated corporate expenses and other activities.
Yes, Fiserv is providing updated supplemental financial information to recalculate certain non-GAAP measures under the new segment reporting structure for prior periods in 2023 and 2022. The company will begin reporting under the new structure with its Q1 2024 10-Q filing, with prior periods adjusted accordingly.
The Merchant segment includes businesses providing commerce-enabling products and services to companies of all sizes. This encompasses solutions for small businesses (e.g., Clover®), enterprise clients (e.g., CaratSM), and processing services for financial institutions, joint ventures, and resellers who have direct relationships with merchants.