Global Payments Seeks Gains From Genius And Worldpay

Global Payments Inc. is betting its future on its internal point-of-sale platform, Genius, while aggressively integrating the massive processor Worldpay. The Atlanta-based company outlined these strategies early Wednesday during a presentation of its second-quarter results, signaling a renewed focus on small and medium-size merchants despite a volatile global environment.

The multi-market Genius technology debuted for restaurants in May last year, followed by a general-retail version in June and one for enterprise companies in September. Global has enlisted 30 banks to help sell the system later this year as they look to refresh the technology with updates. Already, Global has accelerated the rollout of Genius to its merchant base.

Cameron Bready is investing heavily in the system, and the CEO said the technology will help define the payments company for some time to come. He noted that clients are willing to pay for Genius. During the group call, Bready announced plans for an event in Las Vegas later this year to pitch the POS product to resellers.

Part of this strategy involves a new handheld device for table service at restaurants. Global views this hardware as a necessary evolution of the software to keep up with merchant demands. It is a significant pivot for a business that previously relied almost entirely on third-party hardware.

Another major project is the integration of Worldpay, which Global acquired in January from the processor FIS in a deal valued at a net $24.25 billion. The acquisition included the sale of Global’s Issuer Solutions unit to FIS. Now, the integration of Worldpay is progressing rapidly.

Global is looking to the big processor to help recruit and serve small and medium-size merchants while adding that cohort to its overall customer base. Bready credited Worldpay as “a more streamlined organization with faster decision-making.” The combination of the two entities creates a broader network of merchants, though the technical merging of systems remains a complex undertaking.

The company faces a moderate headwind from the ongoing hostilities in the Middle East, which have dampened some of the company’s results. The situation remains volatile and uncertain, and it will continue to impact the travel portfolio. Bready stated that the business is still positioned well for the remainder of the year.

For the quarter, Global reported $3.16 billion in adjusted net revenue, including Worldpay and excluding Issuer Solutions, up 4% from the same period last year. Adjusted net income came to $934.3 million, up 24%. While the travel sector struggles, the company’s core payment infrastructure continues to expand.