Paytech firm Ondot acquired by US banking tech giant Fiserv
Ondot acquired by Fiserv
US banking and payments tech heavyweight Fiserv has signed a definitive agreement to acquire Ondot Systems, a ten year-old payments firm. The financials of the deal have not been disclosed.
Based in California, Ondot claims 4,500+ banks and credit unions in the US as clients, processes more than one billion transactions per month and provides digital capabilities for over 30 million cards. Its flagship offering is a digital card services platform to drive cardholder engagement.
In 2018, Ondot received an undisclosed “strategic” investment from Citi Ventures. Prior to this, it reportedly had raised $51 million in equity financing.
Frank Bisignano, Fiserv’s president and CEO, says the addition of Ondot will enable the company to provide a “unified digital experience”, which in turn, will help its clients “deliver innovative ways for their customers to actively manage their financial lives – at the point of thought”.
The company says in a statement: “With the integration of Ondot, Fiserv will help clients accelerate digital customer acquisition, drive digital commerce, increase card activation and usage, reduce service costs, and engage contextually in moments that matter – all via ready-made solutions for clients.
For example, cardholders can benefit from instant card issuance and usage, as well as unprecedented visibility into purchases through enriched transaction information and actionable insights to spend smarter. Chargebacks and customer service calls are frequently the result of a cardholder not recognising a transaction. Data enrichment from Ondot organises and identifies transaction and merchant data, allowing customers to more easily recognise their purchases and understand their spending patterns, resulting in higher engagement and fewer service calls and disputes.
With these holistic consumer-facing experiences and client-facing tools, card issuers can deliver modern digital card services quickly on top of their existing processing infrastructure.”
The transaction is subject to customary approvals and closing conditions and is expected to close in Q1 2021.
