Fiserv Investor Day Takeaways

Research evidence excerpt

Fiserv Investor Day Takeaways

Truist Securities

Merchant Solutions/Clover. The Merchant Solutions segment is expected to grow at a 6-8% CAGR from 2026-2029 which is a bit

faster than the organic growth Fiserv delivered in 2025 (~5%). Fiserv's targets for Clover volume/revenue growth are consistent with the

expectations they set with initial 2026 guidance (volume growth of +10-15% and revenue growth of +15-20%). Management spent time

discussing Clover's distribution, which has been a competitive advantage historically. For Clover / SMB, Fiserv provided some helpful

detail on the breakdown of the business by distribution channel, highlighting Clover's strong market share in the bank partner channel. The

slide also noted that the ISV channel exhibited strong growth in 2025 (~50%) while the remainder of the business is predominately sold by

third-party ISOs. On this topic, we continue to be a bit worried about Fiserv's distribution moat becoming challenged as Global Payments

(GPN, Hold) and Block (XYZ, Buy) are making their products available to more third-party sellers. International expansion remains a

key part of the volume growth story, with Clover now live in 12 countries and targeting a Japan launch in 2027. Shifting gears to non-

Clover SMB, Fiserv's Merchant Solutions adj. revenue guidance assumes flat to slightly negative growth which would be better than recent

performance (down LSDs). Fiserv's strategy for converting non-Clover merchants centers on the Clover Dashboard, which enables Clover

Capital, Clover Savings (a new offering leveraging the StoneCastle acquisition), and Clover Agent (automated support/issue resolution).

On the Enterprise side, Fiserv's strategy is to lean into eCommerce and Omnichannel as well as Platforms/Marketplaces to drive the next