Fidelity National Information Services has agreed to acquire Worldpay for about $35bn in cash and stock, creating a global payments giant in a bid to reach more customers as merchants and their clients complete an increasing number of transactions online.

The deal marks one of the biggest transactions in the fast-consolidating payments sector that is under pressure to cut costs, develop new products and add customers. It comes at a time of greater regulatory scrutiny and rising competition from technology startups that are squeezing fees.