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May 2016

Quick Analysis: Payments Industry Size & Opportunity

In the U.S., the top 100 merchants make up 38% of debit/credit card volume and 3.5% of the merchant outlets.

Check out the quick analysis, which illustrates a look at the difference between the top 100 merchants and all other merchants in the United States in terms of dollar volume and merchant outlets.

Apr 2016

TSG Commentary on Transact 16

This week, the Electronic Transactions Association (ETA) held Transact 16 in Las Vegas. The event was host to over 4,000 attendees, 200 exhibitors, and countless announcements.

The Strawhecker Group (TSG), a Gold Sponsor, was present at the show. Afterwards, the team put together commentary to summarize key topics heard at Transact 16:

  • EMV Chargebacks
    • While talking to major acquirers at Transact, the conversation has shifted over the past six months from EMV compliance to EMV related chargebacks. As TSG reported, overall chargebacks increased 15.3% in bank card $ volume YOY and 30.9% of bank card transactions. This topic certainly dominated conversations with some large acquirers as they are attempting to determine the root cause of this increase which is not only increasing expense, but also merchant complaints. More to come on this issue as additional data is analyzed.
  • Big Transactions
    • TransFirst is TSYS – was apparent at Transact with the two companies sharing booth space as well as a new management team, after the transaction closed on April 1. Several TSYS clients commented that it will be an interesting transition for the company.
    • Global Payments’ acquisition of Heartland closed on Thursday, April 21. With both Bob Carr and Bob Baldwin set to retire, the industry is losing two very influential participants that have made an impact.

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Apr 2016

Chargeback Uptick in the SMB Market

Some payments companies have been mentioning increases in chargebacks since October 1st. This appears to be true, according to The Strawhecker Group's merchant level database of more than 3.5 million card accepting merchants. The charts illustrate that there were increases in chargeback rates in the SMB market for both transactions and dollar volume throughout much of 2015 with the greatest acceleration occurring in Q4 2015.

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Apr 2016

TSG Mini Report: Average Life of Merchants Processed by 3rd Party Processors

Q: How long do merchants live that are processed on 3rd party processing platforms?  And of these, which merchant types live the longest?

A: TSG completed an analysis utilizing its merchant database of 3.3 million merchants to answer this question. Check it out here.

Assumptions & Definitions:

  • The analyzed dataset included
    • Merchants sold by ISOs that utilize 3rd party processors (as opposed to having “in-house” platforms)
    • Merchants that had between $500 - $500,000 annual volume (the ISO “sweet spot”)
    • Time period: 2012 – 2015
    • Average life = First month of revenue ISO to last month of revenue to ISO

Apr 2016

Now Available - Payments Industry Brief: Size Indicators of the Electronic Payments Industry

This report offers a high-level look at the revenues and volumes of the major sub-markets within the electronic payments industry.The report includes sections on the Payments Industry size by revenue, volume, and concentration.

TSG completed these estimates by using a variety of sources and methods including revenue metrics from TSG's AIM data warehouse, TSG industry records and research, annual reports, data aggregation sources, and TSG Associate knowledge and analysis.

Check it out.

Feb 2016

Now Available - The State of Global Investments and Funding in FinTech and Payment Startups

The FinTech and Payments sector is currently seeing a boom in investment along with strong M&A activity. To help understand this ever-evolving space, TSG has put together a 102-page study, which provides an in-depth look at the payments financing landscape as well as the investors and companies fueling the payments startup ecosystem.

The eReport also identifies the top 157 funded private payments companies and maps them back to 12 payments categories where they operate.

Check it out.

Feb 2016

Now Available - TSG's Directory of U.S. Merchant Acquirers

TSG's directory provides profiles on 250 ISO/Acquirers that include the country's top tier acquirers, along with supplemental ISOs and technology-centered acquirer's.

Company profiles provide factual insights that include (as available) processor relationships, merchant vertical specializations, dollar volume statistics, transaction counts, active merchant outlet counts, key management names and titles, corporate structures, sponsor banks, partnerships and more.

Check it out.

Jan 2016

TSG Payments Index: Performance of Public Payments Companies

TSG has released a new data to illustrate the performance of public payments companies. The 'TSG Payments Index' (TSGPX) is calculated on a value weighted basis using market capitalization and is compared to the S&P 500 which is also calculated using the same methodology. A $100 investment in the TSGPX in Q1 2011 would now be valued at $294, as compared to $154 if invested in the S&P 500.

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Jan 2016

TSG TED - Payments Metrics with Mike Strawhecker

This month, Mike Strawhecker, Principal of TSG, has put together a video discussing Big Data using TSG's data warehouse of over 3.3M card-accepting merchants.

The video covers:
• Total Gross Processing Revenue by Merchant Account Size
• Volume Attrition & Growth
• Annual Net Revenue per Merchant by Volume Net Attrition
• Net Revenue & Attrition by Tier and Merchant Group

https://www.youtube.com/watch?v=hv2WyJLR8Jg&feature=youtu.be

Dec 2015

2015 Payments Industry Predictions Review

No one can predict the future, but those with the right knowledge and experience can make some great educated guesses. It's the time of year when payment industry experts turn to predicting what will happen next. However, often, the majority of us forget last year's predictions as we focus on the upcoming year.

With that said, The Strawhecker Group (TSG) took a look back at 2015 to review the accuracy of nearly 20 different sets of payments predictions.

Continue reading.

https://gallery.mailchimp.com/fdd15cca0b92ae5a85c1daf76/files/2015_Payments_Indu...