Visa The Embedded Lending Opportunity April 2024 Banner

Priority Technology Holdings Sees Demand for Tools for ‘Real-Time Economy’

priority technology holdings

Priority Technology Holdings saw demand for its payments and Banking-as-a-Service (BaaS) offerings grow across its three segments: small- to medium-sized business (SMB) acquiring solutions, B2B payables and enterprise BaaS.

Overall, the company’s revenue increased 12% year-over-year in the fourth quarter of 2023, Priority said in a Tuesday (March 12) earnings release.

“We remain convinced in the potential our unified commerce vision, combining payments and banking functionality on a single platform, accelerated by the strength of our diverse business lines, that we are positioned to benefit from a higher interest rate and to perform in a variety of macroeconomic environments, including the one we’re experiencing today,” Thomas Priore, executive chairman and CEO of Priority, said Tuesday during the company’s quarterly earnings call.

In its SMB acquiring solutions segment, the company saw a 7% year-over-year rise in revenue, with new monthly boards averaging 3,700 per quarter, according to a presentation released in conjunction with the call.

The company’s B2B segment saw a 657% year-over-year leap in revenue due to its acquisition of Plastiq. Priority completed its acquisition of Plastiq in August, saying the combination of the two companies’ B2B offerings would provide a full suite of working capital solutions.

“Fueling our strong outlook, we expect the Plastiq B2B TAM [total addressable market] to be an important growth driver in the business, as demonstrated by the success we are seeing so far,” Priore said during the call.

The enterprise segment gained a 53% year-over-year boost in revenue, with average monthly new enrollments rising to 49,000, up from 39,000 the previous year, the presentation said. Here, an increase in deposit balances and interest rates also contributed to the revenue increase.

Looking ahead, for the full year 2024, Priority expects revenue growth of between 16% and 19%, according to the presentation. That would be an increase from the 13.9% gain seen in the full year 2023.

“We’re confident that our future results will demonstrate how we’ve taken unified commerce to the next level by meeting the demands of modern business and empowering our customers to thrive in a real-time economy through unmatched speed and transparency to their cash flows,” Priore said during the call.