Payments Continue to Outpace the Economy Says New ETA/TSG Econ Report
ETA/TSG 14th Economic Indicators Report Released Today Shows Performance of Macroeconomic, Microeconomic, and Payments Industry Trends
Summary of Payments Section Key Findings -
+ MasterCard experienced strong growth in their debit card business in terms of the number of debit cards issued as well as in the activity of payments made on their debit products. While there are a number of factors behind this growth one could speculate a benefit to MasterCard as a result of the multiple routing provision included in the Durbin Amendment. Click here to see page.
+ The TSGPX, a basket of publically traded payments companies, advanced to its widest spread above that of the S&P 500 with a CAGR of 13% as compared to the S&P’s -0.2% from Q1 2007 to Q1 2012. Vantiv’s recent IPO also shows the recent strength of the industry as companies typically aim to go public in strong equity markets in order to obtain favorable market pricing. Click here to see page.
+ TSG’s merchant database indicated that based on both dollar volume processed and net revenue, merchant portfolios grew 15% year over year. This conclusion is sourced from TSG’s proprietary Merchant Portfolio Performance Study (MPPS) which represents data from 1.2 million merchant accounts which processed over $120 billion in annual volume as of December 2011. TSG’s MPPS report, available to participants only, is produced on a quarterly basis and contains countless charts and time series analysis on over 100 volume, profit, and attrition and growth metrics/ratios beginning with Q1 2009. Click here to see page.
The report is a compilation and analysis of US economic data gathered from dozens of government statistical reporting services and other reputable sources. Its intent is to provide a deeper understanding of the US economy and therefore, the ability for ETA members and other payments professionals to better assess their position in the current economic climate and future direction of their company. This is the 14th edition of the report released quarterly. Please reference cited sources for more detailed statistics. The views expressed are those of ETA/TSG and are subject to change. They are shared for educational purposes only. The information is based upon information we consider reliable, but its accuracy and completeness cannot be guaranteed.