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Global Payments faces industry pricing pressure

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Global Payments faces industry pricing pressure

While analysts point to an increasingly competitive environment for the processor, the company is still trying to raise prices.

Global Payments and other processors face an increasingly competitive market, with rising pricing pressures forcing some businesses in the ecosystem to consider consolidation.

Global Payments has touted increased merchant acceptance of its Genius point-of-sale services brand, but now it may be trying to force through price hikes in an increasingly competitive market.

The payments processing company is seeking to implement a new $699 annual fee for its merchant clients next month, according to a merchant consultant who posted a portion of a Global Payments letter on LinkedIn.

“Worldpay, now part of Global Payments, is introducing a $699 annual fee, with the first charge hitting merchant statements this December. Yes, another one,” Merchant Cost Consulting Partner Matt Rej said in the LinkedIn post last week. “And this is on top of the other increases we've already seen from Worldpay this year.”

Rej questioned, and poked fun at, the reasoning Global Payments provided for the increase, pointing to the company’s letter saying: “Government and industry regulations have had a significant impact on system requirements in the payment processing industry.”

The Atlanta-based company didn’t immediately respond to a request for comment. Nonetheless, in its third-quarter earnings press release last week, the company acknowledged “increased competition in the markets in which we operate.”

25 billion purchase of the merchant services company Worldpay, which could give the company stronger pricing power in the industry.


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