Fintech companies continue to change the nature of the payments industry, integrating digital payments tools and banking solutions into comprehensive ecosystems for every size of business. Priority, led by CEO Thomas Priore, exemplifies this transformative approach by leveraging technology to streamline financial operations in a variety of areas.
In recent years, fintechs have transformed traditional financial services by offering efficient, accessible and user-friendly digital solutions. The platforms offered by fintech companies like Priority cater to the financial requirements for businesses, eliminating the need for multiple service providers.
This convergence simplifies financial management and also introduces innovative features not available in conventional banking systems.
“We are now a payments and banking fintech that has a very elegant set of financial tools that we are able to bring to businesses of all sizes to manage their ecosystem of commerce,” Thomas Priore said. “The business environment has evolved to a demand for commerce solutions.”
Image: Priority CEO Thomas Priore
Priority's strong market position was reflected in its recently announced third quarter 2024 financial results. The company reported revenue of $227.0 million, a 20.1% increase from the same period last year, while adjusted earnings before interest, taxes, depreciation, and amortization grew 21.5% to $54.6 million. The results demonstrated consistent growth across all business segments, including SMB acquiring, B2B payables, and enterprise payments.
"We reported record results in the third quarter as we sustained our positive momentum," Priore said during the Nov. 8 call. Based on this performance, Priority increased its full-year 2024 adjusted EBITDA guidance to between $200 million and $204 million, while maintaining its revenue forecast of $875 million to $883 million, representing a growth rate of 16% to 17% compared to fiscal 2023.
Priority’s Unified Commerce Platform Supports Businesses of All Sizes
Thomas Priore said one reason Priority has stayed ahead of peers when it comes to enhancing what it offers clients is the commitment to investing in technology. Other payments companies and many traditional financial institutions have not done the same.
“I think it's partly due to the limitations of legacy technology,” Thomas Priore said of the difficulties some payments companies face. “And I don't mean this to sound arrogant, but I do think it's a lack of vision. There's a contentment of businesses in our space to just say, ‘Hey, let's just keep doing what we're doing.’ [They are] missing the evolution of the customer and meeting them where they want to be.”
Priority addresses those needs through its Unified Commerce Solutions designed to streamline revenue and accelerate growth through a single, agile system. This platform offers a suite of services, including payables automation, banking and treasury solutions and merchant services, all integrated to provide a seamless financial experience.
Enhancing Efficiency Through Payables Automation
Managing accounts payable is a complex and time-consuming process for businesses. Priority offers payables automation solutions that enable businesses to optimize working capital, automate payments and maximize rewards. By automating 100% of payments, companies can eliminate manual input, reduce processing costs and minimize human error, allowing teams to focus on strategic growth initiatives.
Thomas Priore said this efficiency ties into one of the most important aspects of what Priority offers businesses: cash acceleration. It’s a term that refers to systems that make it possible for businesses to accept and make payments much faster.
With cash acceleration, “the faster I get my money, the better decisions I can make about how to manage my business,” said Thomas Priore.
He added that for business owners, this creates an environment where “when I authorize payments, I'm going to get visibility into the cashflow coming to my business that same day. And better yet, if I can utilize that buying power on that same day, I may be able to pay my vendors early, which can generate early pay discounts.”
Simplifying Finance With Banking and Treasury Solutions
Priority's banking and treasury solutions are designed to automate banking operations and enhance financial transparency. The platform allows businesses to collect, store and send money through a single native system, accelerating cash flow and optimizing working capital.
Features such as nationwide money transmitter licenses and a diverse network of banking partners ensure robust security and reliability, providing peace of mind to users. However, Thomas Priore emphasized that Priority is not, nor does it intend to become, a bank. The company partners with traditional banks to offer many of its services.
“There's been so much talk in fintech of disintermediating banks, and I just think that's a gross mistake,” Thomas Priore said. “We're not a bank. There are things that banks do very, very well. They store deposits very safely, they lend money. At scale, banks are still the largest pool of assets in the U.S. and globally.”
Merchant Services That Make Payment Processing More Efficient
While adding banking solutions to what it offers clients, Priority also continues to enhance its payments processing systems. Priority's merchant services offer tailored solutions that enable businesses to get paid faster and gain greater control over their financial operations.
Capabilities like same-day funding and a variety of payment options empower merchants to meet their goals and enhance customer satisfaction.
Thomas Priore said artificial intelligence will play an important role in both payments and banking solutions. “The thing I'm most excited about as it relates to AI is its predictive insights,” said Thomas Priore. “I think it will improve the personalized delivery of customer service. The way we look at it is it will give our representatives better intel and information to interact with customers.”
He said AI can help drive higher levels of efficiency in a business. That includes helping customers get set up faster and guiding businesses to “get smarter” on risk management. He said AI also will play a key role in optimizing large enterprise financing and cash flow optimization in their supply chain and vendor management.
“These are things that can be really powerful,” Thomas Priore said. “It’s a predictive tool that will help accelerate and improve decision-making.”
by Asim BN via Digital Information World
