Fiserv acquired Skytef and Sled in 2023 to enhance distribution networks and payment service capabilities, particularly in Latin America. These acquisitions are part of Fiserv's strategy to expand its product offerings and geographic reach.

The company has definitive agreements to acquire CCV Group B.V. and Payfare Inc. These acquisitions are expected to expand Fiserv's network of payment solutions and embedded finance capabilities, respectively, and are anticipated to close in the first quarter of 2025.

Wells Fargo provided a notice of non-renewal for the Wells Fargo Merchant Services merchant alliance, which is accounted for as an equity method investment. With the joint venture expected to expire on April 1, 2025, Fiserv expects to receive a cash payment equal to the fair value of its 40% ownership interest of WFMS.

Fiserv maintains an Enterprise Risk Management program to systematically identify and manage risks, including cybersecurity threats. The risk committee of the board oversees the ERM program, and it is reviewed annually by both the risk and audit committees of the board of directors.

Fiserv's enterprise priorities include delivering superior value for clients through leading technology, targeted innovation, and excellence. The company aims to drive growth by integrating solutions, delivering operational excellence, and allocating capital in a disciplined manner.

Effective January 27, 2025, Michael P. Lyons was appointed President and CEO-elect of Fiserv. Mr. Lyons reports to Chief Executive Officer Frank J. Bisignano, who will continue in his current roles as Chairman and Chief Executive Officer until the earlier of Mr. Bisignano's confirmation by the U.S. Senate as the Commissioner of Social Security Administration and June 30, 2025.

The markets for Fiserv's products and services are highly competitive, and the company faces competition from new and existing competitors. Failure to compete effectively could materially and adversely affect the business, results of operations, and financial condition.

The markets for Fiserv's products and services are characterized by constant and rapid technological change. Failure to respond timely to these changes, including artificial intelligence, could result in losing clients or having trouble attracting new clients, and our ability to grow may be limited.

Security incidents involving Fiserv's systems and data, or those of its clients, partners, or vendors, could expose the company to liability or damage its reputation. While the company maintains cybersecurity insurance, its insurance may be insufficient or may not cover all liabilities incurred by such attacks.

Fiserv's principal competitors include other vendors and providers of financial services technology and payment systems, data processing affiliates of large companies, processing centers owned or operated as user cooperatives, financial institutions, independent sales organizations, payments companies and payment network operators.

The products and services in Fiserv's Merchant segment compete with merchant acquirers and financial institutions that provide acquiring and processing services to businesses on their own. In many cases, Fiserv's alliance and commercial partners compete against each other.

The products and services in Fiserv's Financial segment compete with large, diversified software and service companies, independent suppliers of software products, businesses that offer consumer payment solutions and a number of payment and card issuer processors.

Cost of processing and services as a percentage of processing and services revenue decreased to 32.2% in 2024 compared to 34.1% in 2023. This was favorably impacted by strong operating leverage accompanying scalable revenue growth.

Selling, general and administrative expenses as a percentage of total revenue decreased to 32.1% in 2024 compared to 34.4% in 2023. This was favorably impacted by a reduction in amortization of acquisition-related intangible assets and expense management initiatives.

Fiserv's cybersecurity program is designed to enable it to detect and respond to cybersecurity incidents, continually improve the effectiveness of its cybersecurity controls, and dynamically respond to the evolving threat landscape.

Fiserv is using, and expects to continue to expand its use of, artificial intelligence and machine learning in its product development processes, services and operations. This includes enabling higher quality customer service experiences, platform analytics, and fraud mitigation across a number of solutions.

Product development expenditures represented approximately 6% of the company's total revenue for the year ended December 31, 2024 and approximately 7% of the company's total revenue for the years ended December 31, 2023 and 2022.

Small Business revenue growth included payment volume growth and increased hardware offerings from our Clover POS and business management platform, and the expansion of our merchant relationships through value-added services.

Fiserv repurchased $5.5 billion of its common stock during the year ended December 31, 2024. As of December 31, 2024, approximately 18.0 million shares remained under the existing repurchase authorization.

Capital expenditures, including capitalized software and other intangibles, were approximately 8% and 7% of total revenue in 2024 and 2023, respectively.

In August 2024, Fiserv completed the public offering and issuance of $1.75 billion of senior notes, and in March 2024, Fiserv completed the public offering and issuance of $2.0 billion of senior notes. The net proceeds were used for general corporate purposes, including the repayment of a portion of its commercial paper notes and for share repurchases.

Fiserv is committed to providing fair pay to its employees regardless of gender, race, ethnicity or any other protected characteristic, and conducts pay audits to track, measure and evaluate employee compensation.

Fiserv is committed to the safety of its workforce and maintains a global safety program designed to protect the safety and well-being of its employees in the workplace, minimize injury and accident frequency and severity, minimize loss to property, equipment and operational disruption, and enable greater associate satisfaction and productivity.

Career development and internal mobility are important aspects of Fiserv's value proposition for employees. The company provides employees with numerous training and development opportunities and is committed to creating a high-performance culture that values collaboration and innovation.

The global payments landscape continues to evolve, with rapidly advancing technologies and a steady expansion of digital payments, e-commerce and real-time payments infrastructure. Business and consumer expectations continue to rise, with a focus on speed, convenience, choice and security.

Global macroeconomic conditions, including changing interest rates, inflation, disruptions in the global supply chain, changes in consumer spending, the effects of international hostilities, political conditions, and regulations restricting trade or impacting the ability to offer products or services, could have a material adverse effect on Fiserv's business.

The volume and complexity of the regulations that impact Fiserv's business, directly or indirectly, will continue to increase the cost of doing business. If Fiserv or third parties with whom it partners or contracts fail to comply with applicable laws and regulations, it could be subject to liability and its business could be harmed.