Payment processors finding a new normal following post-pandemic austerity

New analysis from FXC Intelligence shows payment processors are beginning to find a new post-pandemic normal after consumer belt-tightening made for a challenging FY 2023.
Every player saw revenue growth in 2023, however most players saw lower growth rates than in 2022, even among those on strong growth trajectories.
The widespread discussions of macroeconomic conditions during earnings calls finally appeared to decline by Q4, with 2024 expected to be easier for payment processors.

Graphic showing payment processors had largely positive revenue growth in Q4 2023

Payment processors are beginning to find a new post-pandemic normal after consumer belt-tightening made for a challenging FY 2023, according to new earnings call analysis from FXC Intelligence, the market leading provider of cross-border payments data and intelligence.

Looking at full year revenue, Paypal is inevitably in the lead, with almost double the FY 2023 revenue of Fiserv – the next largest player on this metric. Beyond this, however, there are some interesting developments.

While on an extremely similar revenue line to Worldline and Worldpay, Square has pulled ahead for the last two years and is now moving closer to Global Payments, the third-largest player in terms of revenue.

Adyen, meanwhile, is for the first time slightly ahead of Paysafe, while emerging markets-focused dLocal is closing the gap on both players.

Every player saw revenue growth in 2023, however most players saw lower growth rates than in 2022, even among those on strong growth trajectories.

The widespread discussion of macroeconomic conditions that has dominated earnings calls over the past year finally appeared to decline in Q4, in part due to the fact that holiday spending by consumers was not as soft as some feared.

Lucy Ingham, Editor-in-Chief and Head of Content at FXC Intelligence, said:

“By analysing payment processor’s earnings calls, FXC Intelligence is able to share how the industry is developing and the key trends that are evolving, and can identify where some players are pulling ahead of the competition.

“There is a widespread feeling that payment processors are expecting 2024 to be easier as macroeconomic conditions begin to turn a corner. As we move into 2024, FXC Intelligence will be keeping a close eye on how pronounced this improvement will be.”

Click here to read the report in full.