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July 17, 2020TransactionWatch

TransactionWatch – Week of July 13th – July 17th

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This Week’s M&A Overview

While M&A activity was slow this week in the merchant acquiring industry, several large financial institutions reported their second quarter results which provides insight into the general economic environment. JPMorgan Chase, for example, reported its total card transaction volume for the quarter decreased approximately 16% compared to the same period last year. However, payment volumes towards the end of the quarter are showing improvements and reaching closer to normal levels. In terms of JPMorgan Chase’s merchant processing for the quarter, the company reported volumes that were nearly the same as the year prior. Alternatively, U.S. Bancorp, which owns Elavon, reported its merchant processing revenues have decreased by 34% year-over-year in the second quarter. This is partly due to Elavon’s large presence in the travel and hospitality industry, which is still recovering from COVID-19.

As payment volumes across the U.S., as well as internationally, continue to make improvements, many merchant service providers will likely return to a close to normal level of operation. One area that has proven to more than withstand COVID19 has been eCommerce, which is expected to see continued interest from buyers.

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