Revenue

6 Months Ended

Jun. 30, 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 $9.4 million and $10.5 million for the three months ended June 30, 2020 and 2019, respectively. The revenue recognized from the sale and rental of POS equipment totaled $19.3 million and $20.2 million for the six months ended June 30, 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 independent sales organizations (“ISO”) 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 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 June 30, 2020						Six Months Ended June 30, 2020
	Americas		Europe		Total		Americas		Europe		Total
	(In thousands)						(In thousands)
Divisions:
Direct	$	26,310	$	25,706	$	52,016	$	61,987	$	56,765	$	118,752
Tech-enabled		29,038		6,625		35,663		57,321		15,863		73,184
Traditional		6,604		—		6,604		13,516		—		13,516
Totals	$	61,952	$	32,331	$	94,283	$	132,824	$	72,628	$	205,452

	Three Months Ended June 30, 2019						Six Months Ended June 30, 2019
	Americas		Europe		Total		Americas		Europe		Total
	(In thousands)						(In thousands)
Divisions:
Direct	$	40,109	$	35,781	$	75,890	$	75,221	$	68,865	$	144,086
Tech-enabled		29,391		9,080		38,471		55,998		17,549		73,547
Traditional		8,156		—		8,156		16,402		—		16,402
Totals	$	77,656	$	44,861	$	122,517	$	147,621	$	86,414	$	234,035