Stephanie L. Ferris
President at Fidelity National Information Services
Thanks, Gary, and welcome, everyone. We've reached a pivotal moment in fintech, where we've seen a fundamental shift in the way our clients and their customers want to consume financial services. First, financial institutions are both modernizing their financial technology facts and looking for ways to expand their own growth, driving increasing demand for Banking-as-a-Service. Second, payments and financial capabilities are being embedded in software and across platforms, driving demand for a financial technology partner to help create a seamless consumer experience.
And finally, rapidly evolving customer digital experiences are pushing our clients to focus on their core businesses and products, creating demand for offerings using a cloud-based as-a-service business model. These trends have created large new areas of growth that cannot be served with traditional fintech models and segments. Our clients are looking for us to deliver these financial services to them by creating new models that utilize our best-in-class assets combined in creative new ways. At FIS, we are uniquely positioned to capture these opportunities. We spent the past five years developing the best-in-class next-generation banking and capital markets technology.
We are one of the only truly global e-commerce platforms. We have a marquee set of global corporate clients, large global banks and asset managers. And we built all of this at scale with global distribution. We're really pleased with our results again this quarter, and you will see that many of our wins reflect these trends and opportunities. In Banking, we had a very strong quarter of core wins, showing continued strength in our traditional banking channel. We're pleased to share that we signed another two modern banking platform deals this quarter, finding our first large bank outside of the U.S. with ANZ Banking Group, the second largest bank in Australia and New Zealand.
Being selected by a global bank of this caliber clearly shows that MBP has global reach and scale. Just as impressive as our recent core banking win with Columbia Bank and Umpqua Bank. Umpqua has been a key client of ours for years, but they were recently acquired by Columbia, who historically worked with one of our competitors. Typically, when a merger like this happens, you would expect acquiring banks to consolidate on to their core. Instead, I'm proud to share that Columbia Bank decided to consolidate onto the FIS core because of our expertise in serving large financial institutions.
Similarly, a large Northeast regional financial institution, Valley National Bank, had made the decision to leave FIS for a competitor. However, their conversion kept getting delayed. And during that time, they acquired another bank who was also running on an FIS core. After a review of the capabilities that the combined bank needed and their experience with their previous attempts to convert off FIS, the bank made the decision to consolidate the new combined bank onto our most advanced regional banking solution. These two examples point to our differentiation and strength in this larger regional bank market.
As we turn to new market growth, FIS is capitalizing on the rising demand for Banking-as-a-Service solutions as banks seek to create new revenue streams by widening their traditional distribution to end consumers through fintechs. And they're looking to leverage our embedded finance ecosystem. As an example, a leading-edge digital bank chose FIS' Banking-as-a-Service solution to support fintechs and offering account opening, money movement and card issuance to their customers. They're an early adopter expanding their reach through the fintech landscape.
We've also seen increased demand for Banking-as-a-Service from fintechs that are demanding other use cases such as embedded lending, accounting, money movement and faster payments. And another exciting win for us, Block recently selected our national payments network to power their Cash App Card. They were drawn to the flexibility and service that we can offer them and are excited to leverage the power of our combined merchant and issuer ecosystem. Opportunities like this are creating a growing pipeline across verticals for payments crypto and digital financing so that banks and fintechs can grow with us as they expand their embedded offerings, all demonstrating the power of unlocking our assets.
In addition to embedded finance, we also see an emerging opportunity to deliver our offerings using our cloud-based as-a-service model and are experiencing this in the wealth and retirement space. Franklin Templeton and T. Rowe Price are two examples of strategic as-a-service wins for FIS. In order to win their business, we live with our differentiated technology, and we demonstrated our ability to automate and scale our services across their expansive businesses. These landmark wins required an as-a-service approach, resulting in a win-win for both our clients and for FIS.
This business model enables both our clients and FIS to participate in the benefits of growing the organic base of revenue and margins of our clients. And to date, these clients have grown organically 10% and all have expanded their scope of services with us. Finally, we're seeing significant momentum behind our Digital Banking Solution, Digital One, where we recently signed several new large regional financial institutions, including CIT and Signature Bank. Given current signings, the Digital One cloud solution will be supporting over four million customers by the end of 2023. Turning to slide 10. In Capital Markets, our end-to-end solution continue to meet our clients' needs.
We successfully signed the fourth largest bank in Japan, Sumitomo Trust Bank, who will implement our risk analytics manager to protect their operations from future regulatory changes. Our growing relationship with this bank also underscores the importance of our world-class scale and international reach. Turning to Europe. We're expanding our relationship with UBS by adding additional modules from our cleared derivatives suite, which will help to enhance their existing operations. This growing relationship highlights the competitive advantage that we've created by using componentized architecture to deploy our new solutions. Each of these important new wins demonstrate how our end-to-end solutions differentiate us from the competition by better meeting client needs with advanced technology.
On slide 11, our Merchant results demonstrate that our long-term strategy is working. Our strategic focus in e-commerce for large as well as SMB and platform businesses is driving strong results. Our diversified e-commerce portfolio in terms of size of clients and verticals that we serve, recent new wins, share of wallet gains from existing customers and the addition of the Payrix capability which opens up our ability to serve SMBs via SaaS platforms are all contributing to outstanding performance. We continue to open new geographies as well as add differentiated new solution capabilities like our recently launched Guaranteed Payments solution.
With this solution, FIS was the first payment processor to guarantee e-commerce merchants increased approval rates and eliminate the financial liability of fraudulent purchases. Built on the back of our investment to improve authorization rates for our clients. This new solution now takes that investment to the next level, creating an end-to-end solution from merchants to banks. It not only eliminates rules at the merchant level through sophisticated machine learning decisioning, but allows them to increase transactions through our issuer partnerships, allowing us to pass broad scores and information on compromised cards from our merchants to our issuers. This solution ultimately helps the merchant drive significantly more revenue by authorizing and improving more transactions.
A large global health and beauty retailer will be an early adopter of Guaranteed Payments, which they will use to help maximize their revenue. As an early adopter, we've seen their approval rates increase by 600 basis points increasing their annual revenue by approximately $45 million, while also eliminating financial fraud liability. Because of the significant value that this brings to our merchants, we're able to increase our revenue, in most cases, doubling what we're earning over our processing revenue. We have many examples of clients getting value from our ecosystem and full suite of solutions, including one of the world's largest grocers who continue to expand their relationship with us adding more banking capability to their operations and a very large global retailer who is expanding their loyalty portfolio by tapping into FIS' network of merchants for rewards redemption.
These two expansion deals combined drove more than $30 million of new contracts in the quarter. All these recent wins demonstrate that our strategy is working. Our expansion into SMB e-commerce with our new platform is also going exceptionally well. Payrix is exceeding our expectations for growth, and we're leveraging its embedded Payment-as-a-Service model to expand into SMB e-commerce in two ways. First, it enables us to serve cloud-based platforms like Mateo, which is a B2B subscription management and financial operations platform that recently selected us to be their Payments-as-a-Service layer. We did have the ability to serve cloud-based SaaS platforms like this before Payrix.
Second, it enables us to offer e-commerce capability to our existing ISV clients. For example, Revel is a long-standing ISV of our serving several verticals. We traditionally serve them for card present only, and now they're expanding and embedding Payrix technology to enable payments in their online ordering and delivery services as well as card-not-present options to their end customer. We're in the process of bringing our capabilities for SaaS platforms and traditional ISVs together into an enhanced platform offering. This platform strategy is critical to our future, and we're continuing to invest to bring new capability, leveraging our full assets.
We expect a full rollout during the third quarter, and I'm looking forward to sharing more with you on the next call. I'll wrap up with slide 12, which describes how merchants 14% constant currency growth is built up by subsegment. Global eCommerce continues to be our fastest-growing business consistent with our strategy. Its revenue growth accelerated to 28% in the second quarter from 23% in the first quarter on a constant currency basis. Enterprise and SMB are also both continuing to grow very well, generating 9% and 8% revenue growth this quarter, respectively. Despite the noise that circulated about Worldpay during the pandemic, our strategy for our merchant business is clearly advantaged in the fastest-growing and most strategically important segments of the market. I want to end my remarks where I started.
We spent the past several years investing to bring forward the next generation of fintech solutions. The market is recognizing our shift. I'm pleased to share that for the second year in a row, we've been named a Fast Company's 100 Best Workplaces for Innovators list, jumping 14 spots in just a year's time competing with over 1,500 companies from various industries. Our inclusion in this exclusive list is a result of our demonstrated commitment to encouraging innovation at all levels attracting top talent and bringing bold new ideas to market. It's a rewarding recognition of the investments we've made. With that, I'll now turn the call over to Woody to discuss our financial results. Woody?
