ETA Report Identifies Business & Personal Services as Attractive Merchant Vertical for Merchant Acquirers

Special Edition Economic Indicators Report Released at ETA’s Strategic Leadership Forum

October 16, 2013 – Through analyzing trends in attrition rates, same-store sales, new account production and net revenue margins among a proprietary database of 1.7 SMB million merchants (representing over 20% of the market), the special edition report identifies two merchant verticals that have outperformed and underperformed the database average in terms of value creation since Q4 2010.  The report is powered by The Strawhecker Group (TSG), a consulting firm focused on the payments industry.

Among the 1.7 million, Business & Personal Services merchants have outperformed relative to the average while Home Furnishing, Improvement & Supply Stores, and Auto & Hardware Stores have underperformed. Primary factors of relative outperformance include lower/improving attrition rates, above average new account production (younger vintage), and relatively stronger same store sales growth. Factors contributing to relative underperformance include higher and worsening attrition rates, slowing same store sales (more cyclical merchant groups as economy slows) and comparatively lower rates of new account production (older vintage).

Click here for the full report.

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About The Strawhecker Group

The Strawhecker Group (TSG) is a management consulting company focused on the payments industry. The company specializes in providing financial institutions, issuers, merchant acquirers, card associations, processing companies, large merchants, and the investment community with advisory services to maximize their growth and profitability. TSG is also a resource of payments industry research, benchmark studies and developing trends. For more information please visit www.TheStrawGroup.com.

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