Revenue

6 Months Ended

Jun. 30, 2022

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 POS equipment. The revenue recognized from the sale and rental of POS equipment totaled $9.1 million and $9.8 million for the three months ended June 30, 2022 and 2021, respectively. The revenue recognized from the sale and rental of POS equipment totaled $19.1 million and $19.6 million for the six months ended June 30, 2022 and 2021, respectively.

The Company disaggregates revenue based on reporting segment and 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 international financial institutions that represent thousands of branch locations which actively pursue new merchant relationships on the Company’s behalf. The Company also utilizes a direct sales team, including outbound telesales, to build and maintain relationships with its merchants and referral partners. The Company also has referral arrangements with independent sales organizations (“ISOs”) that refer merchants to the Company.

● 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 (“B2B”) 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 where the merchant portfolio is not actively managed by the Company. 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, 2022						Six Months Ended June 30, 2022
	Americas		Europe		Total		Americas		Europe		Total
	(In thousands)						(In thousands)
Divisions:
Direct	$	36,023		42,751	$	78,774	$	68,215	$	81,190	$	149,405
Tech-enabled		35,426		13,228		48,654		70,007		24,855		94,862
Traditional		10,243		—		10,243		20,330		—		20,330
Totals	$	81,692	$	55,979	$	137,671	$	158,552	$	106,045	$	264,597

	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
	Americas		Europe		Total		Americas		Europe		Total
	(In thousands)						(In thousands)
Divisions:
Direct	$	32,449		35,874	$	68,323	$	61,353	$	64,096	$	125,449
Tech-enabled		33,623		9,382		43,005		64,782		16,913		81,695
Traditional		10,907		—		10,907		21,271		—		21,271
Totals	$	76,979	$	45,256	$	122,235	$	147,406	$	81,009	$	228,415