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May 24 (Reuters) - Payment technology company Global Payments Inc is nearing a deal to acquire peer Total System Services Inc (TSYS) for about $20 billion in an all-stock deal, a source familiar with the matter said on Friday.
The transaction, which the source said could be announced as soon as Tuesday, is the latest large-scale consolidation effort by payments technology companies as industry players seek domination when spending is increasingly cashless.
Both companies' stock prices jumped on news of a potential deal: by mid-afternoon on Friday, Global Payments had risen 3.4% and TSYS gained 11.4%.
Global Payments and TSYS did not immediately respond to requests for comments.
Bank of America is advising Global Payments on the deal and will also lead refinancing of the combined debt, the source added.
Bloomberg here had first reported about a possible tie-up on Thursday. CNBC reported cnb.cx/2K0zzsJ on Friday, citing people familiar with the matter, the potential timing of the transaction and Bank of America's role.
The financial technology sector is consolidating fast, with global payments set to reach $3 trillion a year in revenue by 2023 as more people switch from cash to digital payments for online and high street sales, consulting firm McKinsey predicts.
Fidelity National Information Services Inc (FIS) said in March it has agreed to buy Worldpay for about $35 billion, after Fiserv Inc announced in January that it was buying First Data Corp for $22 billion. (Reporting by Greg Roumeliotis in New York; Additional Reporting by Aparajita Saxena and Rishika Chatterjee in Bengaluru; editing by Anil D'Silva and Grant McCool)