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Full Year 2018 Processing Volume Up 19% to an All-time Record $3.4 billion; Fourth Quarter Processing Volume Sets New Quarterly Record
Expects to Post Record Fiscal 2018 Revenues
SAN ANTONIO, Texas, Jan. 28, 2019 (GLOBE NEWSWIRE) -- Payment Data Systems (NASDAQ: PYDS), an integrated electronic payment solutions provider, today announced the transaction processing results for the fourth quarter and year ended December 31, 2018.
2018 Annual Processing Results – Record Total Processing Volume
Total dollars processed for 2018 were a record $3.4 billion, reflecting an increase of 19% as compared to 2017.
Credit card dollars processed for 2018 were the highest in the Company’s history and were up 110% compared to 2017. Credit card transactions processed increased 111% compared to 2017, also setting an all-time record.
ACH transaction processing volumes for 2018 increased 17% compared to 2017. Returned check transactions processed during 2018 increased 24% compared to 2017.
Fourth Quarter 2018 Processing Results
Total dollars processed for the fourth quarter of 2018 exceeded $891 million, the highest quarterly volume in the history of the company.
Credit card dollars processed during the fourth quarter of 2018 were up 6% over the same time period in 2017. Credit card transactions processed during the fourth quarter of 2018 were down 2% over the same time period in 2017.
Electronic check transaction volumes during the fourth quarter of 2018 were up 26% over the same time period in 2017. Returned check transactions processed during the fourth quarter of 2018 were up 37% over the same time period in 2017.
“We are thrilled to achieve the highest quarterly and annual level of total transaction processing volumes since the Company’s inception. This dramatic growth will lead to the Company posting record annual revenues for 2018,” said Louis Hoch, President and Chief Executive Officer of Payment Data Systems. “Our ACH business recorded the sixth quarter of sequential growth for electronic check processing volumes, continuing to generate positive cash flow that we are electively investing in our growth businesses: card issuance and processing, and integrated payments via our payment facilitation platform. We anticipate continued strong organic growth as we move forward in 2019, in large part from the scale opportunity our payment facilitation platform represents, but also from card issuance which continues to experience consistent growth. We have recently added eight new partners to our PayFac business, substantially expanding customer acquisition opportunities that will provide tremendous new processing volume potential. The expected growth in transactions and processing volume from these and other new PayFac partners in our pipeline should drive revenue growth throughout 2019 as we integrate our best-in-class solution with software vendors and developers choosing to adopt our technology. Our focus in 2019 is to continue to build a substantial processing business by focusing on top-line growth.”
About Payment Data Systems, Inc.
Payment Data Systems, Inc. (Nasdaq: PYDS), a leading integrated payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to their clients. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Payment Data Systems is headquartered in San Antonio, Texas, and has offices in Franklin, Tennessee, just outside of Nashville.
Forward-Looking Statements Disclaimer
Except for the historical information contained herein, the matters discussed in this release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as "believe," "intend," "look forward," "anticipate," "schedule," and "expect" among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks related to the realization of the anticipated opportunities from the Singular acquisition, the management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearinghouse network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of our stock price, the need to obtain additional financing, risks associated with new tax legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2017. One or more of these factors have affected, and in the future, could affect our businesses and financial results in the future and could cause actual results to differ materially from plans and projections. We believe that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to our management. We assume no obligation to update any forward-looking statements, except as required by law.