Will Brenneman's questions to Deluxe Corp (DLX) leadership • Q3 2024
Question
Will Brenneman asked about the competitive environment and pricing pressure in the Merchant business, transaction growth trends, and the potential impact of increased bank M&A activity on the Check business.
Answer
President and CEO Barry McCarthy stated that while competition exists, Deluxe's focus on service in durable niches mitigates direct price pressure, noting that a recent major bank win was based on service, not price. He described transaction volumes as 'solid' and stabilized. On bank M&A, McCarthy called it 'almost always a very positive for Deluxe,' citing a high success rate in winning the combined business of merged banks, as exemplified by the past Truist deal. CFO Chip Zint added that consolidation does not reduce the end market for their products.