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TSG Press
May 2017

TSG in Digital Transactions: North American Bancard Buys Total Merchant Services As Acquirer Consolidation Continues

Two powerhouse independent sales organizations are joining together. North American Bancard Holdings LLC is buying Total Merchant Services Inc. for an undisclosed amount.

The acquisition, one of many NAB has completed in recent years, marks a significant increase in processing volume, transactions, and merchant locations for the company, says Peter Michaud, director of project management at The Strawhecker Group, an Omaha, Neb.-based payments advisory firm.

The result will be a greater economy of scale for the merged company. “The new entity will process over $50 billion annually from over half a million merchant locations, establishing it firmly as one of the top 10 merchant acquirers (by merchant count) in The Strawhecker Group’s Directory of U.S. Acquirers,” Michaud says in an email to Digital Transactions News. “In addition, this acquisition will expand their offering in the health-care, home/repair, and beauty/fitness verticals, which are high growth, underpenetrated markets.”

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TSG Press
May 2017

TSG Advises Card Payment Services (CPS) in its Acquisition by Cayan

Recently Cayan announced their acquisition of Card Payment Services (CPS). The Strawhecker Group is pleased to announce its role as strategic and financial adviser to CPS in this transaction.

“TSG proved to be a valuable partner in the strategic decision process, and saw the value we have built though our unique portfolio and ISV relationships.  Most importantly they were able to demonstrate our value and through their extensive industry relationships, allowed us to selectively market our company which resulted in our agreement with Cayan.”
Andrew Caine, President CPS

“By introducing CPS as an acquisition candidate to Cayan, TSG helped us enhance our vertically focused strategy. TSG highlighted the strengths of CPS while understanding our goal of servicing under-penetrated niche markets. This transaction highlights TSG’s expertise in the payments and merchant acquiring space and its leadership position as the “trusted adviser” to the highest tier of payments companies.”
Henry Helgeson, CEO and Founder, Cayan

TSG Press
May 2017

Now Available: Consumer Card Brand Sentiment Survey Results

The Strawhecker Group's (TSG) latest eReport, Consumer Card Brand Sentiment Survey Results, provides the findings of a market study that gauges consumer sentiment of major U.S. card brands, and related technologies, in terms of trust and usage.

Payment Types Covered:

  • Card Brands (American Express, Discover, Mastercard, PayPal, Visa)
  • Mobile Wallets (Android Pay, Apple Pay, PayPal Samsung Pay, Starbucks)
  • Online Buy Buttons (Masterpass, PayPal One Touch, Visa, Other)

Learn more.

TSG Analysis
May 2017

Consumer Card Brand & Payment Method Sentiment Survey Results

The Strawhecker Group has recently completed a market survey in order to gauge consumer sentiment of major U.S. card brands, and related technologies, in terms of trust and usage.

Click here to download a selection of results.

TSG Analysis
May 2017

TRANSACT Special Report: U.S. Economic Indicators

The Electronic Transactions Association, in partnership with The Strawhecker Group, is pleased to release this TRANSACT special report on the U.S. economy, focused within the context of the electronic payments ecosystem. This report is a member benefit provided to the ETA's 500+ worldwide member companies.

Report Contents:

  • U.S. Macroeconomic Outlook
  • Payment Network Size & Growth
  • Performance of Public Payments Companies
  • Payments Versus Sports: Perspective in Valuations
  • Consumer Survey Results 

Click here to read the report.

TSG Analysis
May 2017

TSG & ETA Release 'Why are Electronic Payments Important?' Infographic

The Electronic Transactions Association (ETA), in coordination with The Strawhecker Group (TSG) has developed a new version of the infographic titled Why Are Electronic Payments Important?

This communication piece illuminates the crucial role that the electronic payments industry plays in driving healthy economic growth and sustainability throughout the U.S.

Click here to see the infographic.

Several points that are illustrated in the infographic include:

  • 70% of U.S. consumer spending is done electronically, underscoring the importance of the companies that make electronic payments possible
  • The U.S. electronic payments industry is served by over 3,000 companies, from fintech start-ups to the world’s largest corporations (Apple, JPMorgan Chase) 
  • Annual card network U.S. processing volume is now over $5 trillion, which includes American Express, Discover, Mastercard, PayPal, and Visa volume
  • There are ETA member company headquarters in 41 U.S. states and 14 countries

TSG Press
Apr 2017

TSG in Digital Transactions: Despite Hundreds of Players, Just a Few Processors Dominate the Acquiring Industry

Consulting firm The Strawhecker Group is out with its 2016 rankings of U.S. merchant acquirers, and they show that 240 acquirers and independent sales organizations processed more than $5 trillion in payment volume. The 10 biggest acquirers accounted for 80% of that volume.

Topping the list is JPMorgan Chase & Co.’s Chase Commerce Solutions, which posted $1 trillion in U.S. volume last year. Next was First Data Corp.’s direct acquiring business, with $770 billion.

The next eight were: Bank of America Merchant Services, $730 billion; Vantiv Inc., $550 billion; U.S. Bancorp’s Elavon, $320 billion; Wells Fargo Merchant Services, $275 billion; Global Payments Inc. (excluding its Heartland Payment Systems and OpenEdge units), $200 billion; Citigroup Inc.’s Citi Merchant Services, $200 billion; Heartland, $130 billion; and TSYS Merchant Solutions/TransFirst, $120 billion.

First Data, however, is the clear leader when all of its sprawling acquiring businesses, including joint ventures with some of the nation’s largest banks, are added together. The Atlanta-based firm processes for BofA, Wells Fargo, Citi, SunTrust, PNC, and through them, scores of ISOs, many of them billion-dollar-plus entities in themselves. Combined, those five bank partnerships alone generated $1.31 billion in volume last year, putting First Data’s estimated total volume at more than $2 trillion.

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TSG Press
Apr 2017

TSG in Digital Transactions: The Battle of the Contactless POS Technologies

The overall goals of the contactless-payment provider play a key role in which technology to use, says Jared Drieling, business intelligence manager at The Strawhecker Group, an Omaha, Neb.-based payments consultancy.

A service like Chase Pay, which incorporates technology from the QR code-based CurrentC mobile-payments service developed by the Merchant Customer Exchange LLC consortium, is a closed-loop system, he says, while the Apple Pay, Android Pay, and Samsung Pay services have a different goal. “They view their mobile wallets as another prong to get mobile users onto their operating systems,” Drieling says.

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TSG Analysis
Mar 2017

TSG Mini-Report: Payments Vs. Sports - Perspective in Valuations

TSG has pulled together a comparison of public payments companies versus sports teams/organizations. 

Click here for the full illustration.

For example, Square was founded in 2009, went public in November 2015, and is already more valuable than the combined value of the top 50 NCAA men's basketball teams. MasterCard and Visa went from membership organizations to publicly traded companies in 2006 and 2007, respectively; since that time, their value has increased drastically taking them well past the value of the NFL, NBA, and MLB.

TSG Press
Mar 2017

Now Available: Directory of U.S. Merchant Acquirers

TSG's newest Directory of U.S. Merchant Acquirers is now available. This eReport features profiles on 240 Acquirers that include the country's top tier and technology-centered players.

This information, built upon primary and secondary research, provides an unprecedented and detailed look at the players currently involved in the merchant acquiring marketplace. The report is an excellent tool for competitive awareness, M&A activity, potential partnerships and general reference purposes. 

The data included was collected from the companies via a survey in early 2017, from public sources, and/or are estimates by TSG. Where illustrated, numbers have been rounded and are intended to be directional in nature. Company profiles include (as available) processor relationships, merchant vertical specializations, dollar volume statistics, transaction counts, active merchant outlet counts, corporate structures, sponsor banks, partnerships and more. 

Learn more.