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.
- 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.