Revenue

3 Months Ended

Mar. 31, 2020

Revenue

Revenue

(2)      Revenue  

The Company primarily earns revenue from payment processing services, and has contractual agreements with its customers that set forth the general terms and conditions of the service relationship, including line item pricing, payment terms and contract duration.

The Company also earns revenue from the sale and rental of electronic point-of-sale (“POS”) equipment. The revenue recognized from the sale and rental of POS equipment totaled $9.9 million and $9.7 million for the three months ended March 31, 2020 and 2019, respectively.

The table below presents a disaggregation of the Company’s revenue by segment and by division. The Company’s divisions are as follows:

● Direct – Represents the direct solicitation of merchants through referral relationships, including financial institutions and the Company’s direct sales channel. The Company has long-term, exclusive referral relationships with leading financial institutions that represent thousands of branch locations which actively pursue new merchant relationships on the Company’s behalf. The Company also has referral arrangements with ISOs that refer merchants to the Company. The Company also utilizes a direct sales team, including outbound telesales, to build and maintain relationships with its merchants and referral partners.

● Tech-enabled – Represents merchants requiring a technical integration at the point of sale between the Company and a third party software vendor whereby the third party passes information to our systems to enable payment processing. These merchant acquiring arrangements are supported by partnerships with independent software providers, integrated software dealers, and eCommerce gateway providers. In the United States, this division also supports business-to-business customers via proprietary solutions sold directly to merchants and via enterprise resource planning software dealers and integrators.

● Traditional – Represents the Company’s heritage United States portfolio composed primarily of independent sales organizations (“ISO”) relationships. The Company is not focused on this sales model, and it will represent an increasingly smaller portion of the business over time.

	Three Months Ended March 31, 2020
	Americas		Europe		Total
	(In thousands)
Divisions:
Direct	$	35,677	$	31,059	$	66,736
Tech-enabled		28,283		9,238		37,521
Traditional		6,912		—		6,912
Totals	$	70,872	$	40,297	$	111,169

	Three Months Ended March 31, 2019
	Americas		Europe		Total
	(In thousands)
Divisions:
Direct	$	35,111	$	33,084	$	68,195
Tech-enabled		26,607		8,469		35,076
Traditional		8,247		—		8,247
Totals	$	69,965	$	41,553	$	111,518