New Economic Indicators Report Forecasts Robust Payments Industry Growth
The Annual ETA – Strawhecker Group Economic Indicators Report was released today in conjunction with TRANSACT 16, the definitive event for payments technology professionals. The report analyzes:
- Payment Card Spending
- Merchant Concentration by Merchant Type
- Performance of Public Payments Companies
- Funded Payments Categories
- FinTech Unicorns
- and offers Market Transaction Comparable Analysis
Key findings include:
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.
The Annual ETA – Strawhecker EI Report is a benefit available now to ETA members. For information on ETA membership and events including TRANSACT and ETA’s Strategic Leadership Forum, please contact Del Baker Robertson, 202-677-7404 or [email protected].
The Electronic Transactions Association (ETA) is the global trade association representing more than 500 payments and technology companies. ETA members make commerce possible by processing more than $5 trillion in purchases in the U.S. and deploying payments innovations to merchants and consumers.
The mission of The Strawhecker Group (TSG) is to provide the electronic payments ecosystem and its stakeholders with unmatched advisory services. TSG’s unique offering is built on decades of focused expertise, powerful data, and the combined intangible value these provide. Our vision is to be admired for our people, partnership, and performance.