Not All Verticals Are Created Equal, and the Data Proves It

Why It Matters

Understanding which verticals deliver durable revenue and low risk enables acquirers and investors to allocate capital efficiently, outpacing competitors that chase volume alone.

Key Takeaways

• Healthcare accounts for >14% market share with low chargebacks
• Hardware stores show 55‑month median life and positive growth
• EV‑charging tops total volume growth at +84.5%
• Restaurants hold 7% market share but face -26.8% attrition
• Money‑transfer merchants generate $97k revenue per merchant

Pulse Analysis

In the payments ecosystem, merchant acquiring has traditionally been measured by transaction volume, yet TSG’s new vertical analysis proves that strategic focus on specific industries yields higher returns. By evaluating 260 MCCs across eight performance dimensions—market potential, merchant life, net revenue, chargebacks, attrition, same‑store growth, new account volume, and total volume growth—the AIM platform surfaces clear winners and losers. Healthcare dominates with over 14% of the U.S. merchant market, low chargeback rates and strong retention, making it a low‑risk, high‑margin entry point for acquirers seeking scale without sacrificing profitability.

Growth‑oriented verticals are equally compelling. EV‑charging stations exhibit an unprecedented +84.5% total volume growth and minimal attrition, reflecting the rapid rollout of infrastructure and rising consumer adoption. Orthopedic goods follow closely, driven by a surge of new merchants that contributed 61.7% of volume growth. These niches illustrate how emerging sectors can deliver outsized upside when paired with disciplined risk management. Conversely, high‑concentration markets like restaurants and beauty salons, despite their size, suffer steep volume declines and thin per‑merchant revenue, underscoring that market share alone does not guarantee healthy economics.

For acquirers, independent software vendors and private‑equity firms, the practical takeaway is clear: benchmark against industry‑wide data rather than relying solely on internal metrics. TSG’s AIM platform enables firms to pinpoint verticals with optimal revenue per merchant, sustainable merchant lifespans, and manageable chargeback exposure. Leveraging this intelligence informs go‑to‑market strategies, pricing models, and portfolio risk assessments, ultimately translating data into competitive advantage. As the payments landscape continues to evolve, firms that integrate granular vertical insights into their decision‑making will be best positioned to capture growth while mitigating downside risk.