Global Payments brushes off rumors it's going private

Global Payments, one of the largest providers of payment technology and consumer financing solutions, is currently addressing rumors of a potential private equity buyout. While CEO Cameron Bready declined to confirm specific talks, the news signals a major shift in the landscape for retailers who use their systems. For the average merchant, this could eventually mean changes to the software you use to process credit cards or offer financing at the point of sale. Private equity acquisitions often lead to a renewed focus on profitability. This could result in two different paths for your business: faster innovation of new checkout tools or, conversely, an increase in processing fees and a trimming of customer support staff. The company has already been undergoing a 'transformation' to streamline its operations, and a move to go private would likely accelerate this internal restructuring. For now, services remain unchanged. However, if you rely on Global Payments for your store’s financing integrations or merchant services, keep a close eye on your contract terms. Significant ownership changes often precede updates to fee schedules or service-level agreements. The company’s stock has struggled recently, which is why outside investors are looking to step in and shake things up.

Source: American Banker — Top News

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