Payment technology company Global Payments is nearing an agreement to acquire peer Total System Services for about $20 billion, in an all-stock deal that is expected to be announced Tuesday, people familiar with the matter tell CNBC.

The people requested anonymity because the talks are confidential.

Global Payments declined to comment, while Total System Services did not respond to a request for comment.

Shares of Columbus, Georgia-based Total System Services, commonly known as TSYS, are up to 23% year to date, giving the company a market capitalization of $17.6 billion. Atlanta-based Global Payments has traded up 45% during the same period and holds a current market capitalization of $23.3 billion.

The deal would mark the latest in a flurry of activity in the payment technology space. Financial technology provider Fiserv announced plans in January to buy payment processor First Data in a deal worth $22 billion. In March, fintech group Fidelity National Information Services announced plans to buy Worldpay for roughly $35 billion.

The consolidation comes as established financial companies seek to compete with new technology players, like Square and PayPal, which offer technology driven services. Last year, VC funding for payments and processing grew to a total $4.4 billion — a 46% increase from a year earlier, according to PitchBook.

Global Payments and TSYS have both been active acquirers in recent years — looking to build up in-house technology and expand their customer bases.

TSYS bought small business solution payment company iMobile3 last year and merchant payment company TransFirst in 2016.

Global Payments announced plans to buy Heartland Payment Systems for roughly $4.3 billion in 2015 and restaurant payment technology company SICOM Systems for $415 million in 2018.

Bloomberg reported that Global Payments and Total System Services were in preliminary deal talks on Thursday.