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Financial Technology

Usio CEO Provides Business Update

By Business Wire

Business Wire
Overall Rating

Reiterates Full Year Guidance

SAN ANTONIO--(BUSINESS WIRE)--Usio, Inc. (Nasdaq: USIO), a leading cloud-based FinTech integrated payment solutions provider, today provided the following Letter to Shareholders.

Dear Fellow Shareholder:

Usio is a company that serves various industries with diverse payment channels so our customers can collect and issue payments. This has served us well during both good and poor economic conditions. In 2020, unlike other companies in the payment space, we grew revenue as compared to 2019 because of this diversity. As one payment channel or industry was negatively impacted by the Covid shutdown, another payment channel or industry was positively impacted.

The economy continues to be volatile in many areas and as we navigate these changes, we are experiencing a positive trend with certain client segments and more uncertain trends that we are watching closely, both of which I want to comment on.

First, our non-bank lending segment has increased the volume of ACH transactions due to the growth in consumers loans, which naturally leads to more ACH repayments. The growth in consumer loans is also leading to an increase in returned check transactions. Returned checks are the highest margin sub-business of our ACH offering, with gross margins exceeding 80%. In the month of June, we processed more returned check transactions than we have in any month over the last eleven years. We expect to report both sequential and year over year growth in ACH returned check processing for the second quarter of 2022. Additionally, we expect to report sequential growth in total ACH transactions processed. However, as previously communicated, in the second quarter of 2022 we expect to report a year-over-year decline in the number of ACH transactions processed because this quarter will be compared to the record volume of the year ago quarter that was caused by the explosion in crypto enthusiasm. We were pleased to report that we expect the decline to be mild and the resulting revenues for ACH similar to Q2 of 2021.

Second, on July 1, 2022, we became aware that one of our partners, Voyager Digital, publicly announced their intent to, “…temporarily suspending trading, deposits, withdrawals, and loyalty rewards effective at 2:00 p.m. Eastern Daylight Time today [July 1, 2022].” Usio has provided, and continues to provide, payment processing services for Voyager, and both our ACH and prepaid services for Voyager are fully available to them. We expect to continue processing transactions as requested by Voyager. However, as a result of Voyager’s announcement, we believe the ACH volume of transactions we process for Voyager, and consequently our revenues, will be adversely impacted unless Voyager resumes full operations. Voyager is independent from Usio and we can’t predict when, or if, Voyager will resume operations in any capacity. Voyager represented 8% of Usio’s total revenue for full year 2021 and 8% of Usio’s revenues from January 1, 2022 through May 31, 2022.

Of the 8% of revenue generated from Voyager in 2022, 2% represented revenue derived from blank card orders for Voyager’s prepaid card program, on which Usio earned no margin because we sold those cards to Voyager at cost in anticipation of future transactional revenue from card holder usage.

Usio’s fiscal 2022 guidance assumed only $1 million in revenue derived from Voyager’s prepaid card program services for 2022. Through May 31, 2022, revenues from the prepaid card services were approximately $670,000. Thus, we expect the impact of a slowdown or end to this prepaid card program on our bottom line to be minimal.

Voyager’s accounts receivable balances with Usio are minimal as of July 5, 2022.

Because of the strength of our new sales pipeline, potential spoilage on cards and the trends we are seeing in our non-bank lenders, we believe we will be able to replace any potential revenue shortfall from the suspended Voyager processing anticipated in our guidance. Consequently, Usio is reiterating its fiscal 2022 revenue guidance, but widening the range to 16-20% revenue growth for 2022 over 2021. As always, the revenue guidance is conditioned on favorable economic conditions.

We expect the revenue replacement to be comprised of new PayFac relationships that will carry a lower margin than the margins we expected to earn on ACH transaction processing. We also have over $15 million in potential card spoilage revenue that we expect to start to recognize in September of this year and continue to recognize for the following 12-18 months. Spoilage carries significant margins that can be up to 50-80%.

We believe Voyager’s announcement is a temporary distraction from our rapid growth, and we expect to manage these challenges and achieve our objectives for the year consistent with our recent track record.

We have initiated our share buyback plan which was previously announced and have already purchased over $400,000 of Usio stock in the open market.

Finally, Usio is well positioned to capitalize on further growth opportunities leveraging our strong balance sheet with a sufficient cash balance ($7.6 Million as of March 30, 2022) and less than $115,000 in debt.

I look forward to ending the year with strong growth from our PayFac and prepaid segments, and Output Solutions outperforming our expectations.


Louis Hoch
Chief Executive Officer

Here's another interesting article on Top Trends 2022 – Financial Technology

About Usio, Inc.

Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, crypto exchanges, and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to their clients. The company, through its Usio Output Solutions division offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas, and Franklin, Tennessee, just outside of Nashville.

Websites:,, and Find us on Facebook® and Twitter.


Except for the historical information contained herein, the matters discussed in this release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management's intent, belief, and expectations, such as statements concerning our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as "believe," "intend," "look forward," "anticipate," "schedule,” and "expect" among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks related to an economic downturn as a result of the COVID-19 pandemic, the realization of opportunities from the IMS acquisition, the management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearinghouse network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new tax legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2021. One or more of these factors have affected, and in the future, could affect the Company’s businesses and financial results in the future and could cause actual results to differ materially from plans and projections. The Company believes that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.


Joe Hassett, Investor Relations

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First published on Tue, Jul 5, 2022

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