TSYS/Global Payments mega deal closes

The big payment processor/bank technology mergers that were announced early this year are officially closing, setting the stage for complicated conversions and a fierce battle for customer share.

The $21.5 billion Global Payments/TSYS deal is the latest to close, creating a combined company that serves about 3.5 million merchants and 1,300 financial institutions in more than 100 countries.

The deal is expected to provide TSYS with greater access to global markets to respond to broader growth in e-commerce and cross-border payments, and add scale to compete with technology companies such as Stripe and Square.

Fiserv's $22 billion deal to acquire First Data and FIS' $43 billion Worldpay deal closed in July.

The legacy processors are under pressure from technology-focused merchant acquirers, which drew funding from venture capital investors and offer some of the same services.

Stripe has emerged as a major threat, given its large valuation; and Square has made several strategic moves this year, such as expanding its new hardware to additional markets and selling its Caviar delivery unit to DoorDash.