The Nilson Report

Issue 1171 | Mar 2020

FEATURED COMPANIES

Companies featured in this issue include:

Top Acquirers in the U.S.

Investments & Acquisitions—February 2020

U.S. Acquirer Totals 2019—Purchase Volume/Transactions

Merchant Acquirers in the U.S. 2019—Ranked by Visa/Mastercard Volume

U.S. Card Not Present (CNP) Acquiring 2019

Merchant Acquirers in the U.S. 2019 Ranked by Visa/Mastercard Volume

The table on pages 10 and 11 presents the 65 largest merchant acquirers in the U.S. ranked by Visa and Mastercard purchase volume handled in 2019. The five largest are shown here.

1. Chase Merchant Services, New York
$1,147.67 billion purchase volume, +10.1%
2. Bank of America Merchant Services, Georgia
$719.93 billion purchase volume, +5.2%
3. FIS (includes Worldpay), Florida
$707.84 billion purchase volume, +4.9%
4. Wells Fargo Merchant Services, California
$513.26 billion purchase volume, +21.9%
5. Global Payments (includes Tsys), Georgia
$507.39 billion purchase volume, +7.4%

Full access to the Merchant Acquirers 2019 Ranked by Visa and Mastercard Purchase Volume results in the United States is available when you subscribe to The Nilson Report. 

< BACK TO NEWSLETTER ARCHIVE

POSTED MAR 16, 2020 | PRINT

Text to Pay in Healthcare

In 2000, the out-of-pocket expense for medical services received by workers with employer-provided health insurance ranged from 2.5% to 5% of the yearly total. In 2020, individuals with employer-provided or private insurance will be responsible for 20% to 35% of the cost of the healthcare they receive. For providers of healthcare, particularly hospitals connected to physician groups and a full range of related service providers, this means that 20% to 35% of their total revenue must be collected directly from the consumer.

Managing payments for large integrated healthcare providers is the business of VisitPay, formed 10 years ago by former Capital One credit card executives. Its software-as-a-service (SaaS)-based VisitPay platform is provided on a white-label basis at the website of the healthcare provider. It combines charges from hospitals and physician groups to present a single invoice to the patient, minus any payments covered by insurance companies. 

When balances owed by patients are high, VisitPay’s platform automatically offers installment credit terms. Because VisitPay’s clients are large enterprises, installment credit is typically carried on their balance sheets. As a backup, JPMorgan Chase provides the recourse financing. 

VisitPay’s consumer interface was designed for self-service by the patient. What began as a desktop design has evolved into an interface that accommodates the growing number of mobile users. Acknowledging that fact, VisitPay has created a Text to Pay function designed to increase payment rates to its healthcare provider customers. Open rates in text messages are in the 98% range. This leads to more timely payments to the healthcare provider.

Although VisitPay accepts credit and debit cards, ACH payments, HSA (health savings account) cards, can manage multiple payment types (e.g., credit and HSA cards) for a single invoice, and arrange for installment loans to be paid by a checking account, it uses partners for merchant acquiring support. 

Sphere, an integrated commerce company created by private equity firm Waud Capital Partners, is a payment gateway for the VisitPay platform. For VisitPay and other clients (a total of 29,000 card acceptance outlets), Sphere processed 188 million card payment transactions last year valued at $25 billion. It is a registered ISO of Merrick Bank. Sphere resells VisitPay’s Text to Pay product to its larger healthcare customers.

For Text to Pay, customers are notified of a balance due and complete the entire transaction via text by authorizing payment from a tokenized card on file with the healthcare provider. Real-time text bots handle customer service. All HIPAA and PCI security standards are met.

Vincent Martino is Chief Product Officer at VisitPay in Boise, Idaho, vmartino@visitpay.com, www.visitpay.com.

Anthony Lucatuorto is Chief Revenue Officer at Sphere in Melville, New York, anthonyl@spherecommerce.com, www.spherecommerce.com.

© Copyright 2020 The Nilson Report

You have 0 free articles remaining. Subscribe today. View Subscription Offer
New subscribers receive over 130 articles in the 22 issues published each year,
plus the last five years of issues (that's over 1,200 articles) on a searchable flash drive.