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Tuesday, August 18, 2020

Payments shine on Inc. 5000 despite pandemic

Inc. Media's 2020 portfolio of 5,000 high ranking U.S. businesses includes numerous payments and financial service companies, business analysts have noted. To make the cut, the privately held companies must have been established and earning revenue by March 31, 2016, reaching at least $2 million in annual revenue in 2019. Inc. representatives noted that this global recognition can help honorees drive brand awareness and attract talent.

"[The] global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers, and the credibility that helps them drive sales and recruit talent," Inc. Media wrote. "The associated Inc. 5000 Conference is part of a highly acclaimed portfolio of bespoke events produced by Inc."

Inc. representatives further noted that this year's conference will be held Oct. 19 to 23, 2020, entirely online, to protect award recipients, sponsors and attendees during the continuing coronavirus pandemic.

Suneera Madhani, CEO and founder of Fattmerchant and second-year Inc. 5000 honoree, agreed that the honor has helped numerous established companies, such as Intuit, Zappos, Under Armour and Patagonia, gain national recognition.

"Our constant drive for innovation, along with the work we've done to provide businesses with a comprehensive payments experience, led to us making this prestigious list for two consecutive years," Madhani said. "Being ranked in the top 10 percent this year is truly an honor, and we believe our future growth in the SaaS space and our efforts to help businesses adapt to the post-pandemic payments landscape set us up for another year of massive progress."

An uphill battle

Leigh Buchanan, editor-at-large at Inc. Magazine, described navigating current economic conditions as trying to summit K2 amid more avalanches and less oxygen. She praised 2020 winners in an article in Inc.'s September 2020 issue, titled, "Even in Tough Times, These Companies are Set on Reinvention."

"From 2016 to 2019, the Inc. 5000 achieved a median revenue of $10.2 million and a median compound growth rate of 165.3 percent." Buchanan wrote. "These founders were buoyed by smarts and gumption, sure, but also by a lift-all-boats economy. That era is worlds away from the economic decline that hit the U.S. alongside the pandemic in March."

Despite all odds, Inc. 5000 winners continue to add jobs, with only 11 percent cutting staff since March 2020, when the pandemic began to impact small and midsize businesses, Buchanan noted.

Vetting process

Inc. Media described the vetting process for identifying the fastest-growing private companies in the United States as an enormous editorial project that shines a light on entrepreneurship as a valuable economic force. The accompanying application fee of $195 before April 17 and $245 up until May 22, 2020, covered only a fraction of operational costs, Inc. representatives stated.

Companies are ranked according to growth rates over a four-year period. Growth rates are deduced by subtracting first-year revenue from recent annual revenue and multiplying the difference by 100, as follows:

[(Recent Yearly revenue - Base Year revenue) / Base Year revenue] x 100 = total growth percentage

For example, if 2016 revenue was $3 million and 2019 revenue is $15 million: $15 million - $3 million = $12 million 12,000,000 / 3,000,000 = 4 4 x 100 = 400 Growth rate is 400 percent.

Acquirers, service providers

Among the merchant acquirers and service providers that made the 2020 Inc. 5000 list are several returning champions. Choice Merchant Services ranked 1933, returning for the third consecutive year. Choice representatives stated that the company remains the fastest-growing company in the state of Connecticut.

CardFlight, ranked 2543, is also returning for a third consecutive year. CardFlight CEO Derek Webster credited his talented team for their ingenuity and work ethic. "We've been humbled to see our hard work and passion for supporting small business owners be recognized every year since CardFlight first became eligible by a leading entrepreneur-focused publication like Inc," he said. "We look forward to continuing to serve our customers and collaborate with our partners to grow small businesses across America." Following is a partial list of additional Inc. 5000 honorees in merchant services:

  • 1933 Choice Merchant Services
  • 2348 Boost Payment Solutions
  • 2865 ConnectPay
  • 3046 Argus Merchant Services
  • 3254 Clearent
  • 3831 Piedmont Payment Services
  • 4801 Riverside Payments

This article does not purport to contain every company on this year's list that is associated with the payments realm. If your payments-related business was named to the 2020 Inc. 5000 list and is not mentioned here, send a press release to press@greensheet.com, and we'll post it under News From the Wire on our home page. end of article

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