Fidelity Payment Services Announces Strategic Growth Investment from PSG
Investment to support Fidelity Payment Services’ planned expansion with a focus on accelerating go-to-market initiatives and M&A
NEW YORK - Fidelity Payment Services, a provider of fully-integrated omni-channel payment processing technology, today announced a strategic growth investment from PSG, a leading growth equity firm partnering with software and technology-enabled services companies to help accelerate their growth, with participation from existing investor H.I.G. Growth Partners. Financial terms were not disclosed.
Fidelity Payment Services’ differentiated payments system is powered by its proprietary technology platform and payment gateway, Cardknox. The cloud-based platform enables merchants to accept a variety of payment types – credit and debit, EMV chip card, ACH, mobile wallet and others – across a wide array of channels, including in-person, online, mobile and self-service payment terminals. In addition to contributing to a more seamless and secure payments experience for merchants and customers alike, Fidelity Payment Services aims to provide merchants with the visibility and insights they need regardless of channel, while reducing costs via proprietary interchange optimization capabilities.
Fidelity Payment Services currently serves over 22,000 merchants across a variety of industries – healthcare, education, amusement / entertainment, restaurants, travel, retail and more – going to market via a strong network of Independent Software Vendor (ISV) and agent partnerships. The platform allows ISVs and merchants the flexibility and control to customize their payments capabilities, operating on both a traditional referral and a Payment Facilitation (PayFac) model.
With this new funding, Fidelity Payment Services plans to continue to innovate its Cardknox technology platform, enhance its go-to-market strategy and expand into new markets with an eye towards strategic acquisitions.
“The payments ecosystem has been highly fragmented for some time, requiring merchants to manage relationships with numerous payment providers and technology companies. Leveraging our omni-channel technology platform and payment gateway, Cardknox, our goal is to simplify payments processing, combat fraud, lower processing costs and ultimately support the growth of our customers’ businesses,” said David Ilowitz, CEO of Fidelity Payment Services. “We’re thrilled to be partnering with PSG to accelerate our growth and support more merchants and ISVs, while leveraging their time-tested experience and leadership in the payments space.”
“Given PSG’s experience in payments, we recognized Fidelity Payment Services immediately as one of the few providers with a robust proprietary technology platform, putting the company in a unique position to address the complex needs of merchants and ISVs,” commented Marco Ferrari, Managing Director at PSG. “We look forward to partnering with the Fidelity Payment Services team to continue supporting their growth.”
“Fidelity Payment Services’ breadth of capabilities and flexibility allow it to enable frictionless payments in whatever way the consumer wants to pay, we believe positioning the company well for expansion" said Chris Nesbitt, Principal at PSG. "We're looking forward to working alongside the management team to further expand the breadth and depth of the platform, as well as source additional capability sets to bring on."
William Blair served as financial advisor and Paul Hastings LLP served as legal advisor to Fidelity Payment Services. Weil, Gotshal & Manges LLP served as legal advisor to PSG.
About Fidelity Payment Services
Fidelity Payment Services is one of the largest electronic payment providers in North America. Gradually expanding its products and services to stay ahead of ever-changing technology and trends, Fidelity Payment Services offers powerful payment processing tools to support business owners across all channels – in store, online and mobile. Its proprietary and purpose-built platform, Cardknox, is a best-in-class payment technology solution with true omni-channel payment capabilities that streamline and simplify payment processing and lower costs. Founded in 1996, Fidelity Payment Services has transformed its offerings from simple credit card processing hardware and software, while maintaining fast, reliable and friendly service. The company is headquartered in Brooklyn, NY. To learn more, visit www.fidelitypayment.com.
PSG is a growth equity firm that partners with software and technology-enabled services companies to help them navigate transformational growth, capitalize on strategic opportunities and build strong teams. Having backed more than 110 companies and facilitated over 400 add-on acquisitions, PSG brings extensive investment experience, deep expertise in software and technology, and a firm commitment to collaborating with management teams. Founded in 2014, PSG operates out of offices in Boston, Kansas City, London, Paris, Madrid and Tel-Aviv. To learn more about PSG, visit www.psgequity.com.