Fiserv NASDAQ:FISV rose 2.14% intraday after Reuters reported the payments technology company has held talks with JPMorgan NYSE:JPM, Bank of America NYSE:BAC, Wells Fargo NYSE:WFC, and PNC Financial Services NYSE:PNC about selling its STAR Network, the debit card infrastructure that routes transactions between banks, merchants, and consumers. The network serves more than 115 million debit cardholders across over 2,800 financial institutions. No deal is certain and discussions could still fall apart, according to a source familiar with the matter.
The Wall Street Journal noted that an acquisition by large U.S. banks would allow them to bypass federal debit-card fee caps, providing a significant financial incentive. However, some potential buyers have already stepped back, citing concern that such a deal could draw backlash from lawmakers, regulators, and merchants.
The potential sale is part of a broader Fiserv turnaround effort after a difficult year marked by leadership changes. Fiserv shares are down over 70% in the last twelve months.