Fiserv To Acquire FinTech Ondot Systems

The FinTech Fiserv “has signed a definitive agreement to acquire” Ondot Systems, which provides a “digital experience platform” for financial institutions (FIs), according to a press release on Wednesday (Dec. 16).

Financial terms of the deal, which is expected to close in the first quarter of 2021, were not disclosed.

Fiserv, headquartered in Brookfield, Wisconsin, said the deal would expand its digital capabilities and allow it to further “enable clients of all sizes to deliver frictionless, digital-first and personalized experiences to their consumers.” The release said that the combined company would “further develop” the Ondot platform.

Founded in 2011, the Silicon Valley-based FinTech Ondot now processes more than one billion transactions per month and provides digital capabilities for over 30 million cards. The company said it “provides more than 4,500 banks and credit unions with a digital card services platform to drive cardholder engagement.”

“The importance of digital has accelerated, and consumers are increasingly turning to online and mobile banking, as well as contactless payments experiences,” said Frank Bisignano, president and CEO of Fiserv. He said the combined company plans “to provide our clients with a unified digital experience, spanning card-based payments, digital banking platforms, core banking and merchant solutions.”

“Joining with Fiserv will provide Ondot the opportunity to innovate and impact the industry on a global scale,” said Vaduvur Bharghavan, president and CEO of Ondot Systems. While doing that, he said, one goal is to “continue providing high-quality digital solutions to consumers, merchants, acquirers, networks and card issuers.”

When the pandemic hit, Fiserv stepped up and made a plan to help small to medium-sized businesses (SMBs). The company developed “a platform that enabled hundreds of Fiserv client financial institutions across the United States to help facilitate more than 100,000 Paycheck Protection Program loans,” said Mia Shernoff, senior vice president of Fiserv.

In addition, she said, Fiserv reached out to SMBs using its Clover point-of-sale platform to offer assistance with setting up such offerings as online ordering, virtual terminals and QR-code based payments via the Clover platform.