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May 2016

Now Available - Merchant Processing Pricing Benchmark Study - 8th Edition

The Strawhecker Group recently surveyed the merchant acquiring industry to determine the prevailing line item pricing rates for the cost of third-party processing in the U.S. market.  The study included merchant acquirers who use third-party providers for front-end authorization and back-end settlement services.

In total, information was gathered from 83 front-end authorization portfolios and 78 back-end settlement relationships. The chart that follows shows the distribution of data across the volume bands, along with the aggregate monthly transactions for each category.

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Apr 2016

TSG In Huffington Post - Slow EMV Credit Card Payments Could Get Faster

Most of the new EMV card readers are also designed to accept mobile wallets, such as Apple Pay, Samsung Pay and, my personal preference, Android Pay. These payment methods are speedier than card-based EMV payments and just as secure.

They are slowly becoming mainstream: About 28% of smartphone owners surveyed said they had used mobile payments in the 12 months prior to the survey, according to a 2015 study from the Federal Reserve. Digital marketing firm eMarketer projected the value of mobile payment transactions to increase by 210% in 2016.

“There’s somewhat of a perfect storm brewing,” says Jared Drieling, a manager at The Strawhecker Group. “I think with the EMV process of having a consumer insert or dip that card, and the whole process taking a little longer, it essentially lowers the bar now for mobile wallets to take off.”

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Apr 2016

TRANSACT 16 Special Report: U.S. Economic Indicators

The Electronic Transactions Association, in partnership with The Strawhecker Group, is pleased to release this 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.

ETA Member Login
Please login and navigate to 'Member-Only Content' to download Economic Indicators. Forgot your password? Click here.

Report Highlights:

  • The electronic payments industry is strong:
    • U.S. consumer spending via electronic payments methods continues to be very strong at a 9% CAGR, driven by organic growth of the economy as well as consumer usage and merchant acceptance of credit and debit cards
    • Payments companies continually outperform ‘the market’ with a 22% CAGR versus 8.7% for the S&P 500  
  • The electronic payments industry is attractive:
    • Nearly $100 billion was invested into the payments ecosystem globally in 2015; certain payments sub-categories are receiving more attention from investors than others including mobile payments, eCommerce, and security & data analytics
    • The payments industry is a highly active M&A marketplace, especially for merchant acquiring companies, with the average net revenue multiple being 3.9 times annual net revenue. However, the data also shows that multiples drastically vary based on company characteristics.

Apr 2016

The Strawhecker Group Celebrates Ten Year Milestone

“I wanted to own my own business, and I saw a need in the market,” said Kurt Strawhecker, Founder and Partner at The Strawhecker Group (TSG). This was in 2006, when he and Jamie Savant launched TSG, a consulting firm focused on the global payments industry. Ten years later, their business has grown and the industry has evolved, however their core principles have remained the same.

“Being a boutique consulting firm with such a specific offering provides us, and in turn our clients, an advantage,” said Jamie Savant, Co-Founder and Partner. “Our team is made up of payments experts averaging over 20 years of experience, so we are more efficient and higher value than a big five consulting firm, because we have seen so much of it before.”

TSG Turns Ten: 10 Quick Facts

1. TSG has completed thousands of projects for over 550 companies, from fintech startups to Fortune 500 companies

2. The average TSG Associate has 23 years of payments industry experience

3. TSG has advised on 27 successful acquisitions and investment transactions

4. TSG has completed over 170 financial valuations of payments companies

5. Clients of TSG have often experienced ROIs on their TSG consulting investment of over 50:1

6. TSG was honored as Business Partner of the Year by the Electronic Transactions Association in 2010

7. TSG’s unique analytics data warehouse contains over 3.5 million merchants representing more than 40% of all merchants in the US processing nearly $1 Trillion in annualized credit and debit card volume

8. TSG often speaks on industry trends and has been quoted recently in national media, such as: The New York Times, The Wall Street Journal, USA Today, Yahoo! Finance, CNBC, and Forbes

9. TSG has produced over 150 payments industry specific eReports (whitepapers) and analyses

10. NewsFilter, TSG’s weekly payments industry digest, celebrated its 500th edition this month and was distributed to over 40,000 Fintech professionals

http://www.businesswire.com/news/home/20160419005350/en/Strawhecker-Group-Celebr...

Apr 2016

Press Round-Up: EMV Merchant Adoption Slower Than Expected [Updated]

TSG recently released survey results that estimate 37 percent of U.S. merchant locations are EMV-ready four months after the October 1st, 2015 liability shift. See below for a round-up of media coverage from digital and print publications:

Apr 2016

Using Chip Versus Swiping With Credit Cards - WTSP TV

Months after a credit card industry deadline for retailers to help keep your financial data safer, research is showing many stores haven't updated their credit card readers.

“Our survey is showing only around a third of retailers have made the transition,” said Jared Drieling
Business Intelligence Manager for consulting firm The Strawhecker Group.

A credit card industry deadline of Oct. 1 to begin using the new EMV chip-enabled credit cards shifted liability for credit card fraud from the banks to the retailers.  Still many large and small retailers are still swiping their credit card transactions.  The result, is confusion for shoppers whether to swipe or “dip” their card and millions of transactions at a higher risk for fraud.

Watch the video

Apr 2016

The Strawhecker Group's 500th Edition of NewsFilter

It is hard to believe TSG has been publishing NewsFilter for over 9 years. Over those 500 weeks we have shared over 15,000 articles related to the ever-changing Payments Industry. From interchange to consolidation, data breaches to EMV, and mobile payments to bitcoin, the industry continues to evolve...as does TSG's NewsFilter. To celebrate our 500th edition, we have revamped NewsFilter to deliver a more modern, crisp, reading experience. In addition, NewsFilter is now more mobile-friendly than ever. Enjoy!

Subscribers: You are the reason we have reached this milestone! Thank you for your continued support, feedback, accolades, and readership. We will continue to evolve with the industry and provide you with the most relevant content to help you succeed in the Payments Industry.

Check out this week's edition.

Mar 2016

TSG in Yahoo! Finance - The Real Reason Why Some Stores Still Don't Take Chip Credit Cards

The deadline for retailers to change to the chip-enabled payment systems was last October when U.S. credit card companies, including Visa and MasterCard, announced new liability rules. This meant that businesses had to switch over to the new technology or take responsibility for any costs incurred in the event of fraudulent transactions.

Chip cards use EMV technology (which stands for Europay, Mastercard, Visa), and are more secure than traditional swipe cards because they create a unique transaction code that cannot be used again. Cards with only a magnetic stripe use the same transaction code over and over, which makes it easier to skim information.

Despite the now passed deadline, The Srawhecker Group (TSG) released a survey in February estimating that only 37% of merchant locations were EMV ready.

“It appeared that some merchants delayed EMV migration completely until the holiday season ended to prevent friction and confusion at the checkout line,” said Jared Drieling of TSG.

Source

Mar 2016

TSG in CNBC - Retail Businesses Face Big New Hack Liability

When asked if Wendy's new point-of-sale technology includes EMV card readers, company spokesman Bob Bertini said most stores have yet to install the readers. That would put Wendy's more than a year behind the credit card industry's deadline for full compliance with the new rules.

The burger chain is not alone. Consulting firm The Strawhecker Group, which focuses on payments, found that of 90 companies representing about 4 million merchants, nearly 40 percent of respondents had fallen behind in their EMV reader implementation plan. "A lot of key stakeholders in the EMV migration were not prepared," said Jared Drieling, Strawhecker's business intelligence manager.

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Mar 2016

The Strawhecker Group Promotes Andrew Nuss to Director of Marketing

Omaha-based payments consultancy, The Strawhecker Group (TSG), is pleased to announce the promotion of Andrew Nuss to Director of Marketing.

Andrew has made significant contributions to TSG’s growth since joining in 2009, through his guidance of day-to-day marketing and communications tasks. Nuss has helped create global awareness for TSG by highlighting the synergies of the firm’s expertise and unparalleled data. As a leading consulting firm in the Payments Industry, Nuss has helped grow its client base to hundreds clients, including many Fortune 500 companies.

Nuss is also Editor of TSG’s weekly newsletter, NewsFilter, which is distributed to over 35,000 recipients inside and outside of the Payments Industry. Quickly approaching its five hundredth edition, TSG’s NewsFilter is considered by many industry executives to be the preeminent source of weekly news throughout the space.

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