Fiserv-Wells Fargo Merchant Acquiring Joint Venture to Expire in April
Fiserv disclosed Wednesday (Sept. 25) that it expects its merchant acquiring joint venture with Wells Fargo to expire April 1, 2025.
The joint venture, Wells Fargo Merchant Services (WFMS), is owned 40% by a Fiserv wholly owned subsidiary and 60% by Wells Fargo Bank, National Association, Fiserv said in a filing with the Securities and Exchange Commission.
Fiserv acquired its stake in WFMS through its 2019 merger with First Data Corp., according to the filing.
The company expects to record a non-cash impairment in the range of $400 million to $600 million, per the filing.
“In connection with the expiration of the joint venture, the company and Wells Fargo entered into a multiyear agreement for the company to provide processing for current and future merchant clients as well as other services to Wells Fargo’s merchant business,” Fiserv said in the filing.
Before its acquisition by Fiserv, First Data said in an Aug. 15, 2018, press release that it extended its merchant acquiring joint venture with Wells Fargo, WFMS, until Dec. 31, 2024.
Executives from the two companies said in the release that they would ensure that WFMS “continues to provide cutting-edge technology and best-in-class service to clients” and that it delivers “the best services and technology to merchants of all sizes.”
WFMS shepherds the direction and oversight of Wells Fargo’s merchant services business as well as its joint venture with Fiserv, PYMNTS reported in 2019.
In other, separate news from Fiserv, the company launched new products and partnerships in recent months.
It was reported Sept. 19 that the company partnered with Walmart to enhance the retailer’s pay-by-bank offering. With this collaboration, customers who make pay-by-bank transactions will see the purchase show up in their bank account balance right away, with Walmart receiving the funds instantly.
In August, Fiserv and PayPal expanded their global strategic partnership to allow Fiserv clients to more easily enable PayPal, Venmo and related services, and accelerate guest checkout flows in the U.S. via a simple connection point to Fastlane by PayPal.
In June, Fiserv and Monex USA said they would work together to help financial institutions complete international wire transfers.
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