A Thing
The Green SheetGreen Sheet

Friday, April 12, 2019

TSG directory highlights top-rated U.S. acquirers

The Strawhecker Group released the newest edition of the Directory of U.S. Merchant Acquirers to a receptive audience. The Omaha-based analytics and consulting firm noted that payments industry stakeholders have indicated the annual report is now an indispensable resource, bringing it to industry-standard status in the acquiring community. The comprehensive guide lists the top 300 merchant acquirers in the United States in a searchable format. Selected companies are ranked by processing volumes and merchant portfolios, the company stated.

Jared Drieling, senior director of business intelligence at TSG, said, "Many entities and industry journals in our space reference this report when discussing their status compared to other competitors," he stated. "In terms of comprehensiveness and depth, there is not another source for this type of data in our space. We have a lot of clients that eagerly await these results."

Consolidation, disruption

Drieling further noted that analysts combined direct surveys and secondary research to derive more than 8,000 data points across the 300 entities reviewed. Cumulative data resulted in the largest U.S. acquirer directory that TSG has ever completed, he stated.

Describing the merchant acquiring segment as top-heavy, Drieling observed the sector's continuing consolidation, stating that the pending acquisitions of First Data and Worldpay will give seven of the top 10 acquirers exceedingly strong bank channels. However, these legacy players must also compete with an of new technology players, such as Adyen, Stripe, Shopify, Square and Braintree, which all are all top rated by payment card volume, he stated.

Following are additional data points cited in the directory:

  • Top U.S. acquirers directly processed $5 trillion in annual card volume and managed most of the $6 trillion in annual U.S. payment card spend
  • Top five players processed an estimated $4.3 trillion in card volume in 2018
  • 21 percent of the companies listed are publicly traded
  • 61 percent of the entities listed offer cash advances or business loans
  • 40 percent of the top 10 were determined to have 10 percent or more growth in card volume, transactions and/or merchants since last year
  • 34 percent of the entities listed sell First Data's Clover products
  • Chase earned its top rating through its U.S. payment card volume
  • Georgia is the most common state headquarters for the top 25 players

"M&A activity in the payment processing space has shown no signs of slowing down," Drieling said. "Acquirers continue to purchase competitors and are completing ISV acquisitions at a faster pace. The acquiring community is eager to keep their eye on newer entrants that rapidly enter the scene and initiate new ideas for transaction technology." end of article

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
A Thing