Dive Brief:
- Payments giant Fiserv said Thursday it bought CardFree, a payments software and ordering platform, in a deal that will expand the Clover point-of-sale system further into restaurants and lodging.
- CardFree’s software is used by restaurants, hotels and breweries, including Dunkin’ and Lazy Dog Restaurants. The San Francisco-based company was founded by the developers of the initial mobile apps for Starbucks and Dunkin Brands’ Dunkin’, according to a press release Thursday announcing the transaction.
- Financial terms of the deal were not disclosed. Analysts at the financial firm Baird told clients in a note Thursday that they expected the contribution to earnings to be “immaterial.”
Dive Insight:
Clover represents a major area of growth for Milwaukee-based Fiserv, which is keen to expand the product into more verticals.
Fiserv said it will integrate CardFree’s platform into its Clover and Commerce Hub systems, “adding capabilities such as drive-through software, kiosk and sub-inventory enablement, and providing third-party software integration support in loyalty, delivery services, and property management.”
The companies said CardFree “integrates with nearly all [point-of-sale] systems and payment processors on the market” to give merchants a single checkout process for all orders, including those for delivery services.
“Integrating CardFree’s technology into Clover enhances our platform’s scalability and flexibility, empowering hospitality businesses to drive growth through elevated customer experiences,” Takis Georgakopoulos, Fiserv’s chief operating officer, said in the press release.
The acquisition should help “Clover to support small businesses as they grow into larger, multi-location merchants with more complex technical needs,” the Baird analysts wrote.
In July, Fiserv announced a partnership with Rectangle Health to bring its Clover system into more medical and dental practices.
The same month, Fiserv faced a class-action securities lawsuit from investors that alleged the company misled investors about Clover’s growth prospects. The U.S. District Court for Southern New York assigned the case has ordered a status update by Oct. 10.
