On May 28th, 2019, payment processing giants Global Payments and TSYS officially announced a merger in a deal worth 21.5 billion dollars. That merger was just the latest in a series of mergers and acquisitions that have seen some of the industry’s largest players become even larger. In fact, the Global/TSYS merger was the third major merger in the industry in as many years. In January 2018, Vantiv announced a $10.4 billion merger with Wordplay, coming together to form Wordplay Inc., and on July 2017, First Data Corporation acquired CardConnect for $750 million.
These mergers demonstrate a clear trend towards consolidation and rapid, massive growth among the largest players in the payment processing industry. And with each new merger, pressure grows for other payment processors to follow suit in order to avoid being run over or swallowed up themselves. But, whether or not these mergers are good for the companies involved or for the industry as a whole, the million-dollar question is: are they beneficial in any way for merchants?