Major US banks explore potential acquisition of Fiserv network – WSJ

Several major US banks, including JPMorgan Chase, Bank of America, Wells Fargo, and PNC Bank, have held preliminary discussions about acquiring Fiserv's payment network to bypass government-imposed limits on debit card fees, The Wall Street Journal (WSJ) reports, citing sources familiar with the matter.

According to the sources, there is still no certainty that a deal will materialise, as some banks have already concluded that such a transaction is unlikely. Others have expressed concern that the move could trigger backlash from lawmakers, regulators, and merchants.

The newspaper noted that even these early-stage talks highlight the extent to which banks are seeking a competitive advantage in the payments sector. The industry is undergoing significant changes driven by the growing adoption of cryptocurrencies and other financial technologies during the administration of US President Donald Trump.

Under the Durbin Amendment, a section within the 2010 Dodd-Frank law, large banks face limits on the fees they can charge merchants for debit card transactions processed through external payment networks. However, banks that own a payment network are exempt from those restrictions, a factor that has reportedly increased interest in Fiserv’s assets.

At the same time, Fiserv’s shares have fallen by roughly 70% compared with the previous year, potentially making the company a more attractive takeover target, the report added.

By Jeyhun Aghazada