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Boosted by strong growth in its automated clearing house services, credit card acquiring, and other business lines, merchant processor Usio Inc. reported Thursday that its total dollars processed grew 215% in 2021’s fourth quarter from a year earlier and 184% for the full year.
San Antonio, Texas-based Usio processed $9.5 billion for all payment types in 2021, up from $3.34 billion in 2020 as total transactions rose 94% to a record 35.3 million, according to a regulatory filing. The company doesn’t break out transactions by type.
More transactions on Usio’s systems generated an 86% year-over-year increase in fourth-quarter revenues to $17.4 million. Revenues from ACH and related services jumped 93% to $4.6 million. Credit card processing, the company’s largest service, grew 33% to $6.4 million. Usio’s merchant-acquiring offerings include payment-facilitator services.
“We reached an important inflection point in 2021 on the strength of our commitment to providing a portfolio of leading electronic payment technologies and outstanding service to a wide range of industries and governmental entities,” Usio president and chief executive Louis Hoch said in a statement.
Usio, which changed its name from Payment Data Systems in 2019, also manages more than 200 prepaid card programs and expects to be managing more than 300 by year’s end. Prepaid services revenues grew 151% in the fourth quarter to $2.6 million from $1 million a year earlier.
Usio is making its foray into the cryptocurrency world through an expanding relationship with New York City-based Voyager Digital Ltd. Usio provides ACH processing to Voyager under an agreement the companies extend for three years in December. “This year we are excited to begin the rollout of the prepaid card to our partner Voyager’s millions of active users,” Hoch said.
Usio’s other major business, Output Solutions, saw fourth-quarter revenues jump 232% to $3.9 million. The output unit provides electronic bill presentment, document creation, and printing and mailing services for utilities, financial institutions, and other businesses. Usio got into the output business with its late 2020 acquisition of Information Management Solutions LLC.
Higher volumes are helping Usio swing toward profitability. The company reported fourth-quarter net income of $38,811 versus $153,012 a year earlier. For the year, Usio posted a net loss of $321,634 compared with a loss of $2.91 million in 2020.
