Payments systems firm Ingenico reported results Thursday (Feb. 23) for its fourth quarter and in 2016 and noted that growth in transactions — specifically, ePayments — helped drive growth in those periods.
Looking at the quarter, on total sales of €608 million, the firm said that ePayments growth was 19 percent for the period that ended in December, with an attendant 11 percent gain for the whole year. The key driver was, the company noted in its earnings materials, increasing volumes on holidays and eCommerce initiatives, such as Thanksgiving and Cyber Monday.
The overall 3 percent growth in revenues for the quarter were boosted by 16 percent in payments services growth and offset a bit by 3 percent declines in terminals revenues, which was impacted in part by the EMV shift of last year.
Terminal tailwinds, however, came from the Middle East, Africa and Europe, which management has described as steady and mature and where replacement cycles are underway.
Looking at the year ahead, the company said that revenue growth should come in at 7 percent, tied to a decline within the United States, in turn, stemming from a “relaxation,” as the firm termed it, of requirements domestically for chip cards.
Movement to hit revenue targets of as much as €4 billion at the top line may be ambitious (the most recent full year was €2.3 billion), noted management.
The company said in another release that it had closed the acquisition of 100 percent of TechProcess Payment Services, which is an Indian mobile payments provider, and noted that the acquisition boosts the firm’s presence there. Ingenico has said it has 50 percent market share in India for terminals.
Further, Ingenico also stated that it has created two global customer-centric business units tied to online and physical retailers. One unit, the Retail Business unit, looks to increase conversion rates at retailers through omnichannel, while the global Banks and Acquirers Business unit serves banks and acquirers, in part through the firm’s Chinese subsidiary, focusing on terminals.