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

Investor Presentation

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Investor Contact Information

Company

Priority Technology Holdings, Inc.
2001 Westside Parkway
Suite 155
Alpharetta, GA 30004
T: 404-952-2149
IR@prth.com