Stephanie L. Ferris
President at Fidelity National Information Services
Thank you, Gary, and thanks to all of you for joining us this morning. Let me start by saying what an honor and a privilege it is to be assuming the role of Chief Executive Officer of FIS on January one. Gary, thank you for your leadership and mentorship, and I look forward to working closely with you in your new role as Executive Chairman. I also look forward to working with our 65,000 colleagues and our thousands of clients and partners around the world. And finally, thank you to Woody, our outgoing Chief Financial Officer, for his many years of service and congratulations and welcome to Erik Hoag, our new Chief Financial Officer. Let me echo Gary's comments that the third quarter was challenging.
We are not satisfied with our results. Given the changing macro environment, the persistence of inflationary cost pressures and the resulting impacts to margin and free cash flow, we are taking immediate action to permanently reduce the cost structure of the company via our Enterprise Transformation program. Turning to Slide nine. This program will focus on transformation of our business with a goal of maximizing revenue growth while simplifying our operating model. This will enable us to deliver significant reductions in both operating costs and capital expenditures through very targeted actions while always ensuring that our client remains at the center of everything we do.
Our goal is to deliver long-term margin expansion while reallocating capital spend to the highest value-creating activities for our clients, thus driving improved cash flow conversion. This Enterprise Transformation program has two key pillars designed to restructure and reinvigorate our operating model. First, we're focused on permanently reshaping our cost structure through both cost reduction and containment initiatives. These include actions surrounding the optimization and reduction of vendor spend, the outsourcing of non-value-added activities and reviewing and rightsizing the current workforce.
Second, we are focused on increasing the revenue of the company by unlocking value through our targeted enterprise cross-sell program called Amplify, which will take advantage of the significant white space opportunity to sell our existing products across our current segments. We will also be focused on reviewing, aligning and simplifying both our pricing and incentive structures, as well as various other commercial excellence initiatives. We have begun to take immediate actions towards this transformation program.
Detailed planning is underway and our early expectations are to deliver at least $500 million of cash savings with additional upside to be determined as we go through the planning process. Given the economic backdrop, we are pressing to deliver as many of these savings in 2023 as possible. I plan to update you with a more complete sizing and framework for the program on our fourth quarter earnings call. Moving on to the third quarter. Our segment results were mixed. Revenue came in largely as expected with the exception of further deterioration in macroeconomic conditions, primarily in the U.K. Adjusted EBITDA margins were challenged. I'll begin on Slide 10 with a brief overview of our Banking and Capital Markets segments, including highlighting several exciting new wins.
Demand for FIS' mission-critical solutions across both segments continues to be strong with solid positive sales growth and even in this more uncertain macro environment, our sales pipeline remains robust. In our Banking Solutions segment, organic revenue grew 6% or 8% adjusting for the pandemic grow over. Strength was driven by continued demand for our next-generation platform solutions across core, issuer, digital and wealth management. PaymentsOne, our next-generation card management platform had a strong sales showing. Key wins include a leading global card network provider that selected PaymentsOne for its cross-border prepaid consumer and corporate solutions business that serves nearly 20 countries. Migrating from its in-house solution to our API-based platform will enable the company to realize end-to-end efficiency benefits at scale.
Additionally, a leading Philippine financial institution selected PaymentsOne for processing of its credit card and unsecured loans portfolio, helping them to drive innovation and market expansion. And finally, one of the world's largest retailers went live with FIS Premium Payback across its U.S. locations. We see this as a tremendous proof point of cross-selling across our segments. A challenging economic factors like inflation play into consumer shopping decisions. Premium Payback offers significant discounts to shoppers, benefiting both merchants and card issuing banks who are looking to offer more innovative and frictionless way for cardholders to monetize their rewards currency. Turning to capital markets. We had another strong quarter, even with a slowing sales backdrop. Revenue increased 6% organically or 9% excluding license revenue. Capital Markets has been on a multiyear strategy to shift to SaaS-based solutions from license solutions.
We are very pleased to see the success of this strategy. We had several impressive client wins within the Capital Markets segment this quarter, including multiple wins for our cross-asset trading platform with several leading FIS across Europe and Asia. Not only will our solutions provide these financial institutions with a single cross-asset platform to support their front, middle and back-office operations, the platform caters to changing regulatory environments, making local regulatory approval easier for the banks. We also deepened our relationship with a leading data analytics company as they expand their use of our receivables and payables solution for the purpose of empowering their corporate customers to drive automation, cost savings and more effective cash flow management.
Turning to Slide 11. I'll touch on the performance of the Merchant Solutions segment. Given past interest in our Merchant strategy and its evolution in recent years, I'd like to take a few minutes to update you on the competitive position of the Worldpay business as well as the strategic pivot that is currently underway. We will provide a much more comprehensive deep-dive into our differentiated merchant solution strategy and its complementary nature to our other segments in early 2023. Merchant Solutions revenue increased 5% on an organic basis with growth negatively impacted by further deterioration in the U.K., while U.S. consumer spend remained consistent throughout the quarter.
While our merchant business is not immune from an economic slowdown, we believe the business is well positioned to grow through a recession. Approximately 55% of segment revenue is sourced from the e-commerce and enterprise subsegments, excluding the U.K. We would expect these subsegments of the business to be more resilient in an economic downturn relative to SMB. Furthermore, our North American Enterprise subsegment increased 7% in the quarter. This channel indexes towards nondiscretionary spend categories, including big box retail, grocery and pharmacy. While some of this growth is a result of strong year-over-year comparisons coming out of the pandemic, we continue to see and expect strong growth in this key segment of Merchant Solutions.
We have several notable wins this quarter, especially in our e-commerce business, highlighting the strength that our global scale and reach offers to our clients. First, while still early days, we're very pleased with the momentum we are seeing for our recently launched Global Solution guaranteed payments, which we introduced to you last quarter. A large global consumer electronics giant chose this end-to-end e-commerce solution to help them maximize order conversion rates and reduce order fulfillment times, all while eliminating the financial liability of fraud on approved orders. We have also expanded our relationship with a large U.S. discount retailer by expanding processing volumes and adding new services like the FIS Premium Payback solution, encryption and tokenization services.
I'm excited to announce that we officially branded and launched our Worldpay platforms offering, leveraging the capabilities provided by the Payrix acquisition. While still early days, I'm pleased with the momentum we are seeing. Worldpay platform is our innovative approach to addressing the SMB market by empowering SaaS platforms with the unparalleled tools and capabilities across FIS' merchant and banking offerings. We believe we're at the forefront of the new era of payments that will drive the next evolution of services to SMBs via software and platforms with payments and financial services leading the way.
This quarter, we closed several notable wins in verticals such as media and veterinary. In response to questions regarding the performance of the business post-pandemic and in an effort to improve transparency, we are providing some additional detail on this call. First, despite a fair amount of noise around disruption and market share shifts, Merchant Solutions revenue and volume growth in aggregate, when indexed to 2019 levels, has remained stable, showing steady revenue growth and high single-digit volume growth. Further, revenue and volume growth rates and yields have remained consistent by subsegment, albeit they're varied depending on the merchant size and vertical in each category.
To be clear, while our SMB subsegment which indexes to card-present acquiring, has been adversely impacted by changing market dynamics. The strength in our e-commerce business where we continue to grow above market and in our enterprise business has allowed us to deliver consistent top line results. Going forward with continued market share growth in e-commerce as well as our strategic shift to embedded payments and embedded finance, we expect e-commerce to ultimately account for 50% plus of total segment revenue. I will end where I started. I couldn't be more excited about the opportunity in front of us at FIS. And with that, I'll now turn the call over to Erik for further discussion of our third quarter results and our revised outlook for 2022. Erik?