Frank J. Bisignano
Chairman, President and Chief Executive Officer at Fiserv
Thank you, Shub. And thank you all for listening in as we share our results for the quarter and highlight the progress against our growth agenda. As you know, we serve as the operating system for commerce and money movement across our client base of banks, credit unions, fintechs and businesses, ranging from SMBs to mid-market or large enterprises. We help our clients grow by extending our platform to capture new services and new money flows. Our relentless pursuit of innovation for our clients yet again won us several accolades in the quarter. Fiserv was named a leader among merchant payment providers for the Carat operating system by Forrester Wave. Fiserv was also awarded the prestigious Webby Award for our Developer studio, a platform, which provides rich and expansive API integrations. Now moving to our second quarter results.
We delivered a strong 12% total company organic revenue growth, once again exceeding the 7% to 9% guidance range we provided for the year. The terrific performance on the top line resulted in 14% adjusted EPS growth to $1.56, bringing our year-to-date adjusted EPS growth to 17%, at the high end of the 15% to 17% guidance range provided for the full year. We attained $180 million of actioned revenue synergies in the quarter, reaching $700 million since the merger, exceeding the increased commitment of $600 million two years ahead of our original commitment. The impact of high inflation and our continued investment in the business resulted in adjusted operating margin of 33.5%, down 40 basis points from second quarter last year. We continue to see opportunities to innovate for our clients. through our recent acquisitions, such as Ondot, BentoBox and Finxact, as well as organic investments across our portfolio.
Additionally, these investments and accelerated revenue growth resulted in higher capital expenditures and working capital, leading to free cash flow of $658 million for the quarter and $1.3 billion year-to-date. Looking into the remainder of the year, our year-to-date organic revenue growth outperformance of 11% puts us in a very good position to beat our prior organic revenue growth guidance for the full year. Given the strength in the first half of the year, we are raising our full year organic revenue growth outlook to a range of 9% to 11%, up from 7% to 9% previously. The low end of this revised growth outlook assumes a macro slowdown in the second half versus the first half of the year. With this higher organic revenue outlook and the year-to-date adjusted EPS performance of 17% growth, we are raising the lower end about full year adjusted EPS guidance range by $0.05 to a new range of $6.45 to $6.55, representing growth of 16% to 17% over 2021.
Given the elevated inflation environment, unfavorable foreign exchange and our plans to continue to invest in innovation for our clients. We now expect our full year adjusted margin expansion to be at least 100 basis points. Now turning to the business strategy. Fiserv solutions are geared towards merchants and financial institutions, including fintechs. Starting with merchants, we are transforming from selling merchants individual point solutions to offering operating systems: Clover for small- to medium-sized merchants and Carat for large enterprises. This operating system approach expands the size of our total addressable market and makes us more valuable to our customers. We grow and create value in three ways: First, attracting more merchants to our operating systems; second, expanding the relationship we have with our merchants by encouraging adoption of more software and services modules; and third, benefiting from the growth of our existing customer base. Turning to our financial institution clients.
We remain committed to continuously innovate for our clients and broaden our total addressable market. Since we closed the acquisition of Finxact, a leading developer of cloud-native banking solutions in early April, we have been focused on three key areas: Integrating our existing digital surrounds into Finxact; selling Finxact to our existing clients as an innovation platform or sidecar core; and winning new logo sales on the Finxact solution. The feedback from both existing and new clients has been very positive. Now let's dive deeper into our performance in the quarter by business segment. Let me start with merchant acceptance. We posted very strong organic revenue growth of 17% for the quarter. Merchant volume and transactions grew 10% and 7%, respectively. Our global active merchant accounts grew 5% in the second quarter, continuing the positive trend since the start of 2021. Results were strong across all regions.
North America was led by the strength in SMBs, particularly within the restaurant vertical as well as strength in enterprise verticals, such as travel and petro. Our international regions also had very strong performance on a local currency basis, in part offset by unfavorable foreign exchange. Spending across the EMEA region accelerated during the quarter, driven by strength in hospitality, restaurant and retail verticals. Our merchant business in Latin America was very strong in the quarter as we continue to make significant progress in the Argentina market. And in Brazil, onboarding merchants throughout exclusive merchant-acquiring mandate from Caixa. We are also expanding our presence rapidly in Mexico and Colombia. Spending trends in APAC were strong, driven by a rebound in the economic activity across nearly all markets, as well as new wins and implementations. Moving to our merchant operating systems.
Clover and Carat both continue to gain significant traction with clients. Clover global revenue grew 24% in the quarter, driven by volume growth of 27%, as well as growth in software and services penetration to 15%, up over 350 basis points. Clover's vertical-focused strategy continues to deliver in market with BentoBox now fully integrated into Clover for all e-commerce payments. When Bento and Clover are sold together, we see an over three times increase in average revenue per user versus a Clover-only restaurant. In addition, UberEats was launched in the second quarter as another integrated delivery partner for our restaurant merchants. Carat, our omni-commerce operating system for enterprise clients, grew revenue 22%. We saw a broad-based growth across verticals, including petro and quick service restaurants. In the quarter, Carat made several strides in further strengthening its positioning within the petro vertical.
Among the notable wins include a contract with Wawa, a large chain of convenience stores and gas stations. Additionally, we expanded our relationship with a long-standing client to introduce a customized dealer settlement and reporting platform supporting over 10,000 retail locations in North America. In keeping with Carat's mission to continuously innovate for our clients, Carat launched pay by plate, enabling our petro partners to facilitate transactions based on license plate recognition for customers that opt in, replacing the need for a physical card. Carat continues to capture new payment flows and has made significant progress across digital payouts and EBT online, with transactions growing 69% and 54%, respectively, in the quarter. Further bolstering its capabilities, Carat launched new payout options in the quarter to include digital checks, prepaid cards and crypto wallets. We also had some notable wins within our enterprise business in North America during the quarter.
We expanded our partnership with Walmart to facilitate onetime digital payouts to consumers and won a contract with Sodexo, a leading global facilities management company, to digitize consumer and employee payouts. Turning to our international merchant business. We continue to show strong momentum with the following highlights in the second quarter. In EMEA, Fiserv signed a deal with Abu Dhabi Commercial Bank, one of the largest banks in the region with over $115 billion in assets and a significant presence across the retail, corporate and SMB space with over 24,000 POS terminals deployed today. Fiserv will be providing it's acquiring as a service suite of solutions, including our automated onboarding solution and omnichannel acceptance platform, with SoftPOS-enabled deployment. The bank will also benefit from Fiserv's enhanced risk, real-time broad management solutions, our merchant portal and reporting capabilities.
In APAC, we went live with Sportsbet, the market leader in online sports betting across Australia; and boarded 10,000 submerchants from MYOB, a leading provider of digital business accounting services to small businesses in Australia. Moving to the Payments and Network segment. Organic revenue grew 8% in the quarter. This growth was enabled by a variety of drivers across our business lines. Our North American credit active accounts on file grew 14% versus Q2 of last year. This growth was driven by both new business onboarding and a favorable credit environment. As a reminder, in the second quarter, we completed the onboarding of Bread Financial, formerly ADS, the largest of the three top 25 credit issuing wins we announced in 2020. Bread was the third of the three wins to onboard, completing the $120 million in annual revenue related to new wins we announced at our last investor conference.
Looking forward, our current implementation and sales pipeline remains very robust. Our international issuing business grew strong double digits, driven by macroeconomic improvement as well as onboarding of new clients. Our debit business continues to post solid growth, driven by new client wins on our debit networks, STAR and Accel, even as debit transaction growth continues to normalize industry-wide following the stimulus-driven high debit volumes last year. Our market-leading digital solutions, including CardHub and SpendTrack, have become key differentiators in our new business pursuits and serve to drive more cards into our debit network, more opportunities for Fiserv to offer risk, fraud, digital banking and account processing solutions, demonstrating an attractive flywheel effect. We continue to see growth in digital payments driven by Zelle, which posted transaction growth of a strong 35% in the quarter.
Our 1,000th Zelle client went live during the quarter, a feat we accomplished in under four years of commencing Zelle implementations. And we expect this momentum to continue with line of sight into doubling our Zelle client base over the next two years. Fiserv recently won a competitive bid to support the state of California's middle-class tax refund program. Fiserv will manage the program and distribute prepaid debit cards to qualified program recipients. This win reinforces our position as a leading provider of government programs, an area of expanding opportunity. We had a notable win in the student loan processing space which will considerably extend our position as a provider of choice to student loan servicers.
We continue to win credit processing mandates globally. In the second quarter, we expanded our relationship with a U.K.-based financial services company, NewDay, to provide processing and other services as they relaunch the John Lewis Partnership card, one of the U.K.'s most popular retail rewards credit cards. Moving to the Financial Technology segment. We posted another strong quarter with organic revenue growth of 7%, driven by strength in our account processing and digital activity as well as the timing benefit of periodic revenue. We had seven core wins in the quarter, including four competitive takeaways. Sales of digital surround solutions continue to grow at a healthy clip, driven by our 3-pronged approach.
Our proprietary online and digital banking solutions with integrated surround solutions, such as CardHub, Zelle and SpendTrack, offer a leading modern banking experience for our clients and users. In keeping with our open sourced approach to serving our clients, we are also pre-integrating third-party digital solutions into our cores and making these solutions discoverable to clients their our app marketplace. Last but definitely not least, we are making our platform attractive to the developer community by exposing our microservice APIs through our Developer Studio with the goal of becoming the destination of choice for the embedded finance ecosystem, including card issuing and processing, merchant and core banking integrations.
And Finxact further cements our lead in next-generation banking. Our Finxact product was selected by Colorado-based National Bank Holdings to utilize Finxact's modern core to pursue an SMB-focused digital-only greenfield initiative called 2UniFi as part of their initial modernization effort. As an example of cross-selling Finxact into Fiserv's existing core clients, Massachusetts-based Martha's Vineyard Bank will utilize Finxact's open APIs to deliver innovative new products and services across all channels, including highly personalized experiences for its customers. The combination of Finxact's technology and Fiserv's size and scale, ecosystem of digital surrounds and knowledge of banking, is winning over other competing offers in the market. Together, we are delivering value to our clients by accelerating their modernization journey.
Now let me pass the discussion to Bob for more detail on our financial results.