Fiserv’s Clover Revenues Leap 29%, Commerce Hub’s Momentum Continues

In the final three months of the year, Fiserv’s revenue growth continued to be underpinned by its merchant and financial solutions segments — and an embrace by enterprises of Clover, its POS hardware and software flagship offering.

Commerce Hub, the company’s payments acceptance platform, has seen significant growth, management said on its Wednesday (Feb. 5) earnings call, as merchants look toward broadening their payments acceptance across channels.

CEO Frank Bisignano (who will be leaving to helm the Social Security Administration, to be replaced by Michael Lyons) said on the conference call with analysts that during the quarter, “we added large enterprise clients, both traditional and e commerce merchants on the strength of our unified offering, monitoring gateway, and growing value added solutions portfolio. At Clover, we laid the foundation for continuing our strong growth as we released new software, services, and hardware offerings and added three new countries.”

To that end, as the company’s latest supplemental show, adjusted consolidated revenues were 7% higher to $4.9 billion in the quarter. On a segment-by-segment basis, Merchant Solutions sales were $2.5 billion, where Clover sales were 29% higher, and represented $310 billion in annualized GPV, and the small business line of operations saw 12% growth year over year.

The Financial Solutions unit logged sales of $2.4 billion on an adjusted basis. Digital payments adjusted revenues of $975 million were 5% higher than the year-ago period.

During his commentary on the call, Bisignano noted that demand from financial institutions (FIs) to offer CashFlow Central, Fiserv’s small business payments solution, “remains high … The products and clients for this SMB suite span our merchant and financial solutions ecosystems.” The small and medium-sized business (SMB) suite, he said, will be integrated in the current quarter with XD, the company’s digital banking platform.

Bisignano also said on the call that “embedded finance is the most complete use case for our merchant, issuing, and banking assets combined.” He pointed to the recent announcement with DoorDash to offer its delivery contractors banking services through a single app as illustration of the potential within embedded banking.

Looking ahead, Fiserv is guiding for 2025 organic revenue growth of 10% to 15%.

Investors bid the shares roughly 7% higher in intraday trading on Wednesday.

CFO Bob Hau said Clover’s growth was underpinned by value-added solutions, including the Clover SaaS package. The Commerce Hub offering, which includes a payments gateway, has continued what Hau termed “positive momentum,” sporting 250 clients and transactions increasing 10x since the first quarter of 2024.

“Through a single API integration, Commerce Hub clients can access a variety of solutions including fraud and security, routing optimization, pay by bank and data analytics. And we continue to add to this portfolio,” Hau said. The CFO stated that, on average after the first year, Commerce Hub clients use four BaaS products or 60% more than non-Commerce Hub merchants.

During the question-and-answer session with analysts, Bisignano said, that, thus far into the first quarter of the year, things are “off to a good start from an overall consumer spending standpoint … the consumer continues to do well and remain resilient,” and Fiserv benefits “from having the breadth of capabilities serving discretionary as well as non-discretionary categories. Generally, we feel good about our ability to continue to grow nicely as we see consumer spending going on and leveraging our very broad distribution channel and variety of verticals that we serve.”

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