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Table of Contents

Lead Story

Women redefining payments

News

Industry Update

Reprieve for websites objecting to $7.25 billion settlement

DOD accuses China of cyber attacks

TSGPX outperforms S&P 500

SheerID dignifies military via discounts at golf events

Valitor ordered to process WikiLeaks donations

ETA 2013: A hub for payments innovation

Selling Prepaid

Prepaid in brief

Prepaid fraudsters busted

SparkBase finds convenience with Passbook

Views

Electronic billing and payments: green and cool

Patti Murphy
ProScribes Inc.

Taking the checkbook away, or not

Brandes Elitch
CrossCheck Inc.

Education

Street SmartsSM:
Seven reasons to love this job

Dale S. Laszig
Castles Technology Co. Ltd.

NFC - not just payment

Barry Mosteller
CPI Card Group

Ethics and sales success

Jeff Fortney
Clearent LLC

Sell what people really want to buy

Nancy Drexler
Acquired Marketing

Company Profile

Kabbage Inc.

New Products

Free POS system with mobile branding capabilities

Harbortouch/Tabbedout POS system
Company: Harbortouch

Inspiration

It takes emotional talent

Departments

Readers Speak

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

May 27, 2013  •  Issue 13:05:02

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TSGPX outperforms S&P 500

At the 2013 Electronic Transactions Association's Annual Meeting & Expo held in New Orleans, the ETA issued its quarterly analysis of the U.S. economy, which showed that payments industry companies continue to outperform the economy as a whole. The ETA US Economic Indicators Report for the first quarter of 2013, published in collaboration with payments consultancy The Strawhecker Group, said the industry experienced almost 14 times more growth over a six-year span than the overall economy. Jason Oxman, ETA Chief Executive Officer, stated the report shows payments industry trends are looking up as the U.S. economy recovers from the so-called Great Recession.

Report finds payments growth

The report is based on the tracking of a hypothetical $100 investment made in 2007 in a selection of payments industry companies known collectively as the TSG Payments Index. The performance of that "investment" was then compared with Standard & Poor's 500 stock market index, a leading indicator of the nation's economic performance.

The result was that the TSGPX grew 14.2 percent between the first quarter of 2007 and the first quarter of 2013. During the same period, the S&P 500 index grew just 1.6 percent, according to the report.

"This report gives ETA members a deeper understanding of where things stand, both in the industry and the overall economy, so they can better assess business opportunities in the marketplace," Oxman said.

New metric added to report

TSG created a new metric in the report called the Gross Value Profit Index (GVPI). The GVPI shows the value of merchant portfolio revenue streams based on data from 1.6 million merchants in the TSG database, representing about 20 percent of U.S. brick-and-mortar retailers.

The GVPI revealed a merchant portfolio revenue stream growth rate of 21 percent between the fourth quarter of 2010 and the first quarter of 2013. The growth rate during the same period for the TSGPX was 26 percent, while growth in the S&P 500 stood at 6 percent, the report said. "The value of the collective representative portfolio has increased 49 percent since the fourth quarter of 2010," the ETA said in its May 2, 2013, statement. "Of that increase, 19 percent is due to the addition of high performing merchants to the portfolio in the last 12 months."

The report also reviews 80 industry enterprise and merchant portfolio transactions conducted from 2000 to 2012. The ETA said the data demonstrated that "net revenue multiple averages rebounded in 2012, after dropping following the recession." This edition of the ETA US Economic Indicators Report is available in full to ETA member organizations.

For additional news stories, please visit www.greensheet.com and click on "Read the Entire Story" in the center column below the latest news story excerpt. This will take you to the full text of that story, followed by all other news stories posted online.

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

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Spotlight Innovators:

North American Bancard | USAePay | Super G Capital LLC | Humboldt Merchant Services | Impact Paysystems | Electronic Merchant Systems