How Shift4’s CEO Looks to Build Shift4 Into ‘the SpaceX of Payments’

Having finished what its chief executive called “a very busy quarter,” the major processor Shift4 Payments Inc. early Thursday reviewed recent moves in acquisitions, stadium deals, and point-of-sale technology, both for its longstanding position in the U.S. hospitality market and overseas. Even more ambitious initiatives are looming, promised chief executive and founder Jared Isaacman.

“We are not going to sit on our hands and wait for opportunity to come our way,” he declared during the company’s June-quarter earnings presentation. “It’s no secret I’d like to see Shift4 become the SpaceX of payments.”

With that ambition guiding the company, Center Valley, Pa.-based Shift4 has been active lately in acquisitions. In the second quarter alone, it reinforced its already major position in restaurants with a $250-million deal for the POS technology vendor Revel Systems. Weeks later, it paid about $38 million to acquire Vectron Systems AG, a deal that gave Shift4 a bigger presence in POS technology for restaurants in Europe.

Isaacman is particularly high on Vectron’s potential. “Vectron is a story that will play out over 10 years,” he told equity analysts on the earnings call. “But it will be a hell of a lot easier to say where our next 65,000 customers are coming from in Europe.”

Isaacman promised more deals in coming months particularly as it expands its SkyTab technology platform for restaurants. “Revel and Vectron have been winners and there will be more like them.” Still, Shift4 president and chief strategy officer Taylor Lauber sounded a slightly cautionary note during the company’s presentation. “Restaurants may be experiencing a mild slowdown,” he said, without citing numbers. Indeed, a recent report from processor Fiserv Inc. found restaurants lagging other business categories in sales last month.

But Shift4 has compiled a backlog totaling $25 billion in volume with merchants that are “already installed or will be soon,” Lauber added, including sports stadiums signed by the company but where equipment isnt yet live. Shift4 now sees about one-third of its volume from stadiums and restaurants, Lauber said. Stadiums in Miami, Indianapolis, Chicago, and Memphis were among those that signed with the company during the quarter.

All told, Shift4 logged a 50% increase in end-to-end payment volume in the quarter compared to the same period last year, reaching $40.1 billion. This is higher-margin volume the company processes on its platform rather than switching out to other providers. Gross revenue less network fees totaled $320.6 million, up 40%, while net income added up to $54.5 million, a 48% rise.