Fiserv, Inc. (NASDAQ:FISV), a global provider of financial services technology solutions, has entered an agreement to acquire Ondot Systems, Inc., a digital experience platform for financial institutions. The transaction is expected to expand Fiserv digital capabilities, enhancing its integrated solutions so that clients can offer a seamless, digital-first and personalized experience to consumers.
Launched in 2011, Ondot processes over 1 billion transactions each month and offers digital capabilities for more than 30 million cards. Fiserv intends to further develop the Ondot platform’s interplay between real-time authorization, user context, and AI in order to “engage users in-the-moment – before, during and after transactions,” according to a release.
Frank Bisignano, President and CEO at Fiserv, stated that digital services have become increasingly important and consumers are turning to online and mobile banking. They’re also conducting more contactless payments, Bisignano added.
He also mentioned that by combining Ondot and Fiserv capabilities “at scale,” they intend to offer their customers a “unified digital experience, spanning card-based payments, digital banking platforms, core banking, and merchant solutions, enabling them to deliver best-in-class solutions that continue to reduce friction for their customers.”
As noted in the announcement:
“With the integration of Ondot, Fiserv will help clients accelerate digital customer acquisition, drive digital commerce, increase card activation and usage, reduce service costs, and engage contextually in moments that matter … cardholders can benefit from instant card issuance and usage, as well as [more] visibility into purchases through enriched transaction information and actionable insights to spend smarter.”
Vaduvur Bharghavan, President and CEO at Ondot Systems, said that the Fiserv “aspiration” to move funds and information in “a way that moves the world fully resonates with Ondot’s mission.”
He further noted that joining Fiserv will offer Ondot the opportunity to help the industry on a global scale. He also mentioned that his organization plans to expand the scope of its offerings as they integrate with Fiserv’s capabilities in order to keep providing digital solutions to consumers, merchants, acquirers, networks and card issuers.
As confirmed in the release, the transaction (or acquisition) is subject to “customary approvals and closing conditions and is expected to close in the first quarter of 2021.” The financial terms of the deal have not been shared publicly.
As reported in August 2020, Fiserv had announced plans to offer payments and financial services tech solutions to India’s Federal Bank. In March 2020, Fiserv acquired Bypass Mobile, an enterprise point of sale systems services provider.