Investor Relations

Priority Technology Holdings is a leading provider of merchant acquiring, integrated payment software and commercial payment solutions, offering unique product and service capabilities to its merchant network and distribution partners. Growing into the 5^th-largest non-bank merchant acquirer in the U.S. and processing more than $48 billion in volume annually, Priority leverages a proprietary platform of microservices purpose-built to monetize vertically specialized merchant networks. The company operates the following business segments:

• Consumer Payments: Provides full-service payment processing and payment-enabled solutions for B2C transactions, leveraging Priority’s proprietary software platform, distributed through ISOs, agents, banks, and ISVs
• Commercial Payments: Provides market-leading accounts payable automation software, payment processing and managed services to industry leading financial institutions (including Citi, MasterCard, and AMEX) and corporations
• Integrated Partners: Provides vertical-specific payment-enabled software solutions for high-growth markets

Priority primarily generates revenue from volume-based payment processing fees, along with software and subscription fees and managed services fees for supporting B2B programs.

Investment Considerations

Large Market Opportunity with Strong Tailwinds

• Electronic consumer payment volume expected to grow at a 7% 10-year CAGR, as consumers increasingly use cards over paper-based payments and global eCommerce continues to accelerate
• 11% 7-year CAGR for digital B2B payments volume, driven by an increase in AP automation and card payment adoption
• COVID-19 pandemic accelerates the shift to electronic payments

Capitalizing on Attractive Organic Growth Opportunities

• Robust core acquiring growth through diverse reseller network
• Strong growth in specialized merchant acquiring business lines and exceptional growth in Integrated Partner channels as COVID19 accelerates shift of cash and paper payments to digital
• Commercial payments fueled by large FI partner signings, pipeline conversions and acceleration of AP automation

Scalable, Innovative Technology Platform

• Robust, agile technology provides resellers and merchants with a fully customizable suite of applications and solutions to help manage critical workflows
• Integrated processing ecosystem with direct connections to card networks
• Technology agnostic, developer friendly software

Strong Revenue Growth and Inherent Operating Leverage

• High-value solution, low volume attrition of 11%
• High-growth, transaction-based business provides recurring revenue stream
• Secure, long-term relationships with distribution partners delivers steady stream of 4,900+ new merchant onboards per month
• Capex-lite business, with 85% operating free cash flow conversion 

M&A Platform Opportunity

• Purpose-built shared services and technology infrastructure enables Priority to quickly board new volume, eliminate redundant operating costs and introduce proprietary products to drive new revenue sources and improve retention
• Robust M&A pipeline, targeting attractive merchant acquirers, vertical-specific software, and expanded capabilities in new payment adjacencies

Strong Management Team with Track Record of Execution

• Priority’s executive management team has a record of execution in the merchant acquiring and technology-enabled payments industry
• Priority’s proven execution track record is reflected in its core revenue growth and strong profitability