Building Momentum in PayFac Propels Fourth Quarter Card Processing Volume Growth to 17%, best quarterly card processing growth of 2019
Usio, Inc. , an integrated electronic payment solutions provider, announced transaction processing results for the fourth quarter and year ended December 31, 2019.
Record Full Year 2019 Processing Volume
Total dollars processed for 2019 exceeded $3.54 billion, the highest annual volume in the history of the company, reflecting an increase of 5% as compared to 2018.
Fourth Quarter 2019 Total Card Processing Volume Growth Led by Strong Results in the Payment Facilitation Business
Credit card processing volume growth in the fourth quarter was more than double the growth of any other fiscal 2019 quarter, with dollars processed during the fourth quarter of 2019 up 17% over the same time period in 2018. More importantly, the increase in card dollars processed is almost entirely attributed to the incremental volume processed through the company’s Payment Facilitation platform, which was up sequentially over the third quarter and at a factor of more than three times the sequential quarter-over-quarter growth rate of any other quarter in 2019. Credit card transactions processed during the fourth quarter of 2019 were up 27% over the same time period in 2018, again primarily attributable to execution against the PayFac strategy.
Total dollars processed for the fourth quarter of 2019 exceeded $900 million.
Louis Hoch, President and CEO of Usio, said, “I am pleased to report another year of record total transaction processing volume. In the fourth quarter, we saw an inflection in the growth of our Card Processing business, where year-over-year volume was up 17% and transactions processed were up 27%, with both growth metrics more than double the best growth rates over the first three quarters of the year. The growth in the card business was led by the performance of our PayFac platform, where the strong sequential growth experienced over the course of the year continued into the fourth quarter. We also grew processing volume in our ACH and Prepaid business in 2019 as our ability to offer the market a comprehensive solution to all of their electronic payment processing needs continues to gain traction. We are encouraged by another quarter of increasing processing volumes and the acceleration in the performance of the growth initiatives the company has been electively, and very intentionally, investing in and commercializing over the last few years. This is the foundation of what we believe will be another year of exciting developments for Usio.”
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Detailed Full Year 2019 Processing Volume Performance
Credit card dollars processed for 2019 increased 12% compared to 2018, while credit card transactions processed increased 10%. Both credit card dollars and transactions processed during the period were the highest in the history of the company, due in large part to the accelerated momentum the company is seeing in its Payment Facilitation business.
ACH transaction processing volumes for 2019 increased 8% compared to 2018. Returned check transactions processed during 2019 decreased 2% compared to 2018.
Prepaid card load volume increased 74% and transaction volume increased 91% in 2019.
Detailed Fourth Quarter Processing Volume Performance
Credit card processing volume growth in the fourth quarter was up 17% over the same time period in 2018 while credit card transactions processed during the fourth quarter of 2019 were up 27%. Credit card volume gains in the fourth quarter, again, were largely attributable to growth in the PayFac platform.
Electronic check transaction volumes during the fourth quarter of 2019 were down 2% while returned check transactions were down 3% over the same time period in 2018.
Prepaid card load volume in the fourth quarter was up 39% and transaction processing volume was up 69% compared to the fourth quarter of 2018.
