When you hear the phrase "large-cap fintech stocks," you probably think of companies like PayPal and Square. Relatively few investors think of Fidelity National Information Services (NYSE:FIS), better known as simply FIS, even though it's the world's largest payment processing company. Its market cap sits at more than $80 billion and it executed transactions totaling $9 trillion last year.
If you don't know FIS, it's time to get familiar. In this Fool Live video clip recorded on Jan. 14, Fool.com contributor Matt Frankel, CFP, spoke with Jim Johnson, head of merchant solutions at FIS, to quickly introduce investors to the business.
Matt Frankel: FIS is considered generally like the pioneer of the FinTech space, but for those people who are listening, who aren't necessarily familiar, can you briefly explain what the company does and what its market is?
Jim Johnson: Yeah, I would tell you. I'll start with our tag line, our mission statement. Really, we lift the economies and communities of our globe by advancing the way the world pays, banks, and invest. Really, our company as we've evolved, we really wanted to be able to control a person and individual, a company, a business' financial journey from the start to the end. As our children begin their financial lives, usually the first thing they do is make payments, and as they evolve, they look to form a banking relationship of some type, whether it be with the formal financial institution or one of the new FinTech start-ups now that are serving a lot of the unbanked. Then if we're fortunate enough over time to accumulate some wealth and a little bit of savings, we try to influence the way they invest that money. Really, that's in a nutshell, the simplest way to explain what we do.
Frankel: Correct me if I'm wrong on this. You guys are the largest payment-processing company in the world right now, that's correct right?
Johnson: That is a true statement. I don't know how many years in a row it's been, but we've been and the manner in which they measure those things, we're considered the world's largest financial services player from that regard.
Frankel: I saw that you moved $9 trillion around the world last year. I think that was the statistic I read.
Johnson: With our acquisitions, it's constantly a moving target. [laughs] Last year we did the largest deal in fintech with WorldPay, so I think the $9 trillion number is accurate.