After two delays, processor Vantiv Inc. and London-based merchant acquirer Worldpay Group plc finally announced a formal deal Wednesday that has Vantiv acquiring Worldpay in a deal that creates a global processing powerhouse. “For Vantiv, the merger brings diversification from a geography and merchant-concentration perspective,” Jared Drieling, Director of Business Intelligence at TSG, tells Digital Transactions News by email. “Clearly, the deal provides Vantiv with international capabilities, and the top acquiring position in the United Kingdom. The merger also provides Vantiv some diversification within its existing merchant portfolio.”
TSG in Digital Transactions: Vantiv To Take Worldpay’s Name In a Merger That Will Create a Global Acquiring Powerhouse
Now Available: Social Media Pages of Top Merchant Acquirers
TSG's latest eReport, Social Media Pages of Top Merchant Acquirers, provides quick insight into the performance of social media efforts of the top 25 U.S. merchant acquirers.
This Report Includes Two Main Elements:
- Charts on the amount of followers each acquirer has on Twitter, Facebook, LinkedIn, and Instagram
- Screenshots of the social media pages and website homepage for each acquirer, as applicable
- The included screenshots display what type of wording and imagery is “front and center” for each acquirer
Now Available: Payments Industry 101
The Strawhecker Group's (TSG) latest eReport, Payments Industry 101, can serve as a guide to understanding the landscape of the U.S. payments industry. This material, expertly curated by TSG, provides excellent coverage of the payments ecosystem and the industry’s opportunity, as well as valuable insights into merchant acquiring, credit card issuing, and general industry trends.
Seasoned executives, and newcomers alike, will find substantial value in the content!
This Report Contains:
- 64 pages
- 60 tables and charts
- 300 companies/organizations mentioned
TSG In Digital Transactions: With Transaction Time Critical, a Strawhecker Platform Monitors Gateway Performance
What’s the measure of a well-performing payment gateway? Time. Or, rather a lack of time.
Gateways, which route online transactions to one of multiple payment processors, are judged on their speediness and reliability. That’s why The Strawhecker Group, an Omaha, Neb.-based payments consultancy, started its Gateway Enterprise Metrics platform. The service monitors the performance of participating gateways in real time.
In May, the average transaction time was 3.2 seconds for the seven gateways in the evaluation. The slowest transaction time was 3.6 seconds, and the quickest was 2.8 seconds.
ISVs – More Than Meets the Eye
TSG and ETA have developed a brief overview on Integrated Software Vendors (ISVs). Click here to download.
What are ISVs?
An Integrated Software Vendor (ISV) is a company that provides software solutions that aid in managing different functions of a business operation. Generally, ISVs specialize their solution to a specific merchant vertical often times at a granular level.
Why are ISVs Important to Payments?
ISVs integrate, or are primed to integrate payments features into their software. These vendors offer payments companies a complementary solution and open up a new merchant sales channel. The ISV Channel is often characterized by high merchant retention rates, due to the integral role a multi-functional software system provides
Interested in ISV Research?
TSG has completed research on approximately 1,000 different ISV companies spanning a dozen verticals. Email or call 402-964-2617 to learn more today!
TSG in ISO & Agent: Focus on Technology and Specialization
VARs and ISVs serve an important role in helping merchant acquirers and independent sales organizations (ISOs) make sense of a complex web of payments processing moving parts. But for those acquirers and ISOs that serve small and mid-sized merchants, VARs and ISVs are particularly critical. While large merchants typically have internal IT departments to manage the hardware, software, and services inte- gration that merchants need to process payments, merchants with fewer IT resources are reliant on someone else to manage the integration, explains Jared Drieling, Director of Business Intelligence for The Strawhecker Group. Acquirers and ISOs are turning to VARs and ISVs for help in meeting these merchant needs.
“Merchant acquirers and ISOs need to evolve to new market demands and are looking to VARs and ISVs to provide a bundled package of hard- ware and software that works together for their merchant customers,” says Drieling.
The Integrated Opportunity: First Data's Acquisition of CardConnect
The world around us has become increasingly connected, and as such purchasing behaviors of consumers are evolving as well as the tactics merchants are pursuing to take advantage of this reality. For payment providers, the need has been clear: a frictionless, efficient and integrated solution for merchants. Unfortunately, for many incumbents with legacy technology, supporting digital and physical payments across multiple channels has been a hurdle. However, major acquirers understand that we live in a software economy and an integrated payment technology approach can win new customers and help retain existing ones. As such, there is a gold rush within the acquiring community to acquire integrated payment assets. Hence, First Data’s acquisition of CardConnect for $750 million which is expected to close in the third quarter of 2017. This deal follows other integrated plays such as the TSYS acquisition of Transfirst, PayPal’s acquisition of Braintree and the billions that Vantiv has spent on acquiring integrated technology. More so, private equity firm GTCR recently announced the acquisition of Sage’s North American Payment Solutions business to build out an SMB integrated offering.
TSG in Digital Transactions: In Yet Another ISV Play, GTCR Buys Sage Payment Solutions for $260 Million
Finally, the rumors can stop. Sage Payment Solutions, the U.S. merchant-services arm of Sage Group plc, has been sold to GTCR LLC, a Chicago-based private-equity firm, for $260 million, GTCR announced Friday. Reports of a possible sale of the company, which counts approximately 100,000 merchants in its portfolio, originally surfaced in January.
That growth could come via providing services to software developers. It was one of the first merchant acquirers to actively court independent software vendors, says Peter Michaud, director of project management at The Strawhecker Group, an Omaha, Neb.-based payments consultancy.
“Through Sage Group’s [enterprise resource planning] products and other ISV partners, Sage Payment Solutions is positioned to expand into new ISV verticals and partnerships,” Michaud says in an email to Digital Transactions News. The merchant acquirer also supports the ISO and bank channel.
Strength in integrated payments is a valuable asset lately, as borne out most recently with First Data Corp.’s deal to buy CardConnect Corp., an ISV, for $750 million. “As with recent acquisitions in the payment industry, technology and ISV integration is highly valued,” Michaud says. “The investment commitment in the platform reveals that GTCR sees an opportunity to use technology to drive both revenue growth and operational efficiencies at Sage Payment Solutions.”
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.”
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