Direct Answer
91 SEC filers are classified under the Standard Industrial Classification codes that describe the merchant acquirers industry, and their latest annual reports show $510.8 billion of combined revenue and a median operating margin of 6.9%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Merchant acquirers sign up merchants to accept cards and process payments, earning a share of the fee on each transaction plus software and terminal revenue. Volume growth and price competition drive results. The first numbers to compare across companies here are processed volume, net revenue take rate and merchant retention.
Key Industry Metrics
- Processed volume: Value of card and electronic payments handled for merchants. It tracks consumer spending and inflation, and drives fees.
- Net revenue take rate: Revenue as a share of volume, after network and bank fees. A falling rate shows price competition, and a rising one shows mix gains.
- Merchant retention: Share of merchants kept year to year. Small businesses switch often, so retention shows service quality and contract strength.
- Software and integrated payments share: Part of revenue from software, terminals and integrated services rather than pure processing. It is stickier and carries higher margins.
- Gross margin: Revenue minus processing and network costs, as a share of revenue. Pass-through fees weigh on it, and software lifts it.
Primary Macro Drivers
- Consumer spending and e-commerce: Fees follow transaction value, so more spending, especially online, lifts processed volume and net revenue.
- Small business formation: New businesses add accepting merchants and processed volume, so small business creation supports merchant growth.
- Software partnerships: Software partners that bundle payments bring merchants and stickier relationships, lifting integrated payments share and retention.
- Pricing competition: Rivals cut prices to win merchants, lowering revenue per dollar processed. Watch net revenue take rate and merchant retention.
Major Risks
- Fee compression: Competition and large merchants' bargaining reduce what is earned per dollar. Watch net revenue take rate and gross margin.
- Merchant attrition: Merchants may switch providers or close, lowering volume. Watch merchant retention and processed volume trends.
- Competition from large platforms: Platforms and software firms can offer payments directly and capture merchants. Watch integrated payments share and merchant retention.
- Fraud and chargebacks: Merchants who fail or commit fraud leave chargebacks with the acquirer. Watch fraud and chargeback losses and gross margin.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Medium |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Merchant Acquirers Filers in the SEC Record
91 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 7389, 7374. Their latest fiscal years end between 2024 and 2026, and together they reported $510.8 billion of revenue. Median revenue growth over the prior year was 9.9%. Median operating margin was 6.9% and median net margin 3.6%. Median total liabilities were 60% of total assets, and 58 of 91 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Accenture Plc | $69.7 billion | 7.4% | 14.7% | 11.0% | FY 2025 |
| Pdd Holdings Inc. | $61.8 billion | 14.5% | 21.6% | 22.7% | FY 2025 |
| Uber Technologies, Inc | $52.0 billion | 18.3% | 10.7% | 19.3% | FY 2025 |
| Visa Inc. | $40.0 billion | 11.3% | 60.0% | 50.1% | FY 2025 |
| Paypal Holdings, Inc. | $33.2 billion | 4.3% | 18.3% | 15.8% | FY 2025 |
| Mastercard Inc | $32.8 billion | 16.4% | 57.6% | 45.6% | FY 2025 |
| Mercadolibre Inc | $28.9 billion | 39.1% | 11.1% | 6.9% | FY 2025 |
| Fiserv Inc | $21.2 billion | 3.6% | 27.5% | 16.4% | FY 2025 |
The 8 largest of 91 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Merchant Acquirers guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Merchant Acquirers industry?
Key performance indicators for the Merchant Acquirers industry include: Processed volume, Net revenue take rate, Merchant retention, Software and integrated payments share, Gross margin. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Merchant Acquirers industry?
The Merchant Acquirers industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Merchant Acquirers industry?
The primary risks for Merchant Acquirers companies include: Fee compression, Merchant attrition, Competition from large platforms, Fraud and chargebacks. Investors should assess each company's exposure to these factors and its track record of navigating them.