ISV are Set to Make $4.4 Billion on Payments in 2021 - ETA and Double Diamond Group Infographic

The growth in integrated software vendor (ISV) derived gross processing volume (GPV) is outpacing growth in the retail-centric acquiring industry by nearly 4X. PFs’ transaction volume is expected to grow 88% YOY and reach $513B by 2021² , generating $4.4B in revenue. There are 23,000 business-to-business software-as-a-service companies generating $32.8B1 annually. Nearly half are in the ISV addressable payments market, making them ideal candidates to become PFs. Payment Facilitators: Catalysts for Acquiring Industry Growth 2011–2016 TOTAL MARKET ISV1 6% 23% GPV US$5.2T GPV US$148B 23K 43% 11% 46% Non-US Non-Payment ISV Payment Opportunity 11K ISVs Potential Processing Volume = $1.6T Card Present Card Not Present 4.2K Companies $787B Processing Volume 6.3K Companies $772B Processing Volume Many of these ISVs focus on untapped and/or rapidly growing vertical markets where payment processing growth will be much faster than in retail. HEALTHCARE EDUCATION CHARITIES RENT/HOA SUBSCRIPTION/BILL PAYMENT SALONS PERSONAL TRAINING TRANSPORTATION GOVERNMENT/UTILITIES 88% 2016–2021 ISVs that transition to PFs and extend frictionless boarding, simplified pricing, and one point of support for sub-merchants will experience significant growth. PROCESSING REVENUE CUSTOMER RETENTION 1. Source: Centaur Parnters as quoted in Forbes, http://www.forbes.com/ sites/louiscolumbus/2015/01/24/roundup-of-cloud-computing- forecasts-and-market-estimates-2015/#2483092d740c 2. Excludes PayPal, Square, and Stripe. Copyright © 2016 Electronic Transactions Association and Double Diamond Group—www.electran.org and www.doublediamondgroup.com. Looking to become a payment facilitator? Get the tools and learn industry best practices for settlement, registration, funding delays, fraud, security, and related issues. Download a copy of ETA’s Payment Facilitator Guidelines at www.electran.org/pf.