1. Imagine a blend of **Stripe** for payment processing and **Green Dot** for prepaid card services, tailored for businesses, governments, and utilities.

2. It's like **PayPal** or **Stripe** for businesses and governments, but with a strong emphasis on e-check (ACH) processing and prepaid card issuance.

Here are Usio's major products and services:

• ACH Payment Processing: Usio processes electronic payments from bank accounts, including converting paper checks to e-checks and electronically re-presenting non-sufficient funds checks.
• Card Payment Processing: The company offers merchant account services for processing credit, debit, and prepaid card transactions through major card networks, supporting both online and physical terminal transactions.
• Web-based Payment Application: Usio provides a proprietary online platform that allows companies to process one-time and recurring payments using e-checks or credit cards.
• Interactive Voice Response (IVR) Payment System: This system enables companies to accept payments directly from consumers over the telephone using e-checks or credit cards.
• Prepaid and Incentive Card Services: Usio issues and manages prepaid and incentive card programs, including operating a core processing platform for these cards.
• Billing and Document Services: The company offers electronic bill presentment, document composition, decomposition, and printing and mailing services for various industry verticals.

Usio, Inc. primarily sells its integrated electronic payment processing services and prepaid card programs to other companies and organizations.

Its major customer categories include:

• Merchants and Businesses (for general payment processing, online terminal services, web-based customer service applications, and IVR systems)
• Resellers (for ACH products and services)
• Government Entities (for prepaid card programs)
• Corporations (for prepaid card programs)
• Utilities (for prepaid and incentive card issuance, electronic bill presentment, document services)
• Financial Institutions (for prepaid and incentive card issuance, electronic bill presentment, document services)

• Visa Inc. (V)
• Mastercard Incorporated (MA)
• American Express Company (AXP)
• Discover Financial Services (DFS)
• JCB Co., Ltd.

Louis Hoch, Founder, Chairman and CEO
Mr. Hoch is a co-founder of Usio, Inc. (formerly Payment Data Systems, Inc.) and has over 30 years of management experience, with 25 years at a senior executive level in public companies. He previously co-founded Billserv, Inc., a leader in Electronic Bill Presentment and Payment, where he served as President and COO. Billserv was later acquired by American Express.

Michael White, Senior Vice President, Chief Accounting Officer
Mr. White serves as the Senior Vice President and Chief Accounting Officer for Usio, Inc., responsible for the company's accounting functions and financial reporting.

Greg Carter, EVP, Payment Acceptance & Chief Revenue Officer
Mr. Carter has extensive senior management experience across telecommunications, billing and settlement, and retail sectors. He previously held the position of Chief Executive Officer for BSG Clearing Solutions, a publicly traded settlement and clearing house. His background also includes senior sales and marketing roles at companies such as MCI/Telecom*USA, US Long Distance, Qwest, and nii Communications.

Houston Frost, Chief Product Officer
Mr. Frost is the Chief Product Officer at Usio. Before joining Usio in December 2014, he co-founded Akimbo Financial, Inc. in January 2010 and served as its President, CEO, and Director. Akimbo Financial, Inc. was subsequently acquired by Usio. He also worked as an Associate at JPMorgan Chase & Co. on the Fixed-Income Strategy team.

Ken Keller, Senior Vice President, Chief Technology Officer
Mr. Keller is the Senior Vice President and Chief Technology Officer for Usio, Inc.

Key Risks to Usio (USIO)

1. Intense Competition and Pricing Pressure: Usio operates in the highly competitive electronic payment processing industry, facing numerous established players and new entrants, including financial institutions, large technology companies, and specialized fintech providers. This intense competition can lead to pricing pressure, reduced profit margins, and challenges in acquiring and retaining customers, potentially hindering Usio's ability to grow its market share and revenue.
2. Regulatory Compliance and Evolving Payment Landscape: The financial services and payment processing sectors are subject to extensive and evolving regulations, including those related to data security (e.g., PCI DSS), anti-money laundering (AML), consumer protection, and payment network rules. Non-compliance could result in significant fines, legal liabilities, reputational damage, and operational restrictions. Additionally, rapid changes in payment technologies and consumer preferences necessitate continuous investment in adapting Usio's services and infrastructure, which can be costly and impact profitability.
3. Cybersecurity Threats and Data Breaches: As a processor of sensitive financial and personal data for merchants, businesses, and consumers, Usio is a target for cybersecurity attacks and data breaches. A successful breach could lead to severe financial losses from remediation efforts, regulatory penalties, legal claims, and a significant loss of customer trust and brand reputation. Maintaining robust and continuously updated cybersecurity measures requires substantial ongoing investment and expertise.

The following are clear emerging threats to Usio:

• Rise of Real-Time Payment Systems: Usio provides various types of Automated Clearing House (ACH) processing. The emergence and increasing adoption of real-time payment systems (such as FedNow in the United States) pose a clear threat. These systems offer immediate funds availability, which contrasts with the batch processing and multi-day settlement times often associated with traditional ACH transactions. As businesses and consumers increasingly demand faster payment settlements, the demand for traditional ACH services for certain use cases could diminish, impacting a core part of Usio's business.
• Proliferation of Embedded Finance and Platform-Native Payment Solutions: Usio offers merchant account services for card-based transactions and proprietary web-based customer service applications for processing payments. A significant emerging threat comes from the trend of "embedded finance," where payment processing and related financial services are increasingly integrated directly into broader business software platforms (e.g., e-commerce platforms, point-of-sale systems, enterprise resource planning software). These platforms often offer comprehensive, native payment solutions that reduce or eliminate the need for merchants to contract with standalone payment processors like Usio, potentially bypassing their merchant account services and payment application offerings.

Usio (USIO) operates in several large and growing addressable markets within the United States for its electronic payment processing services.

Automated Clearing House (ACH) Processing

The U.S. ACH Network is a substantial and critical component of the country's payment ecosystem. In 2025, the ACH Network processed a total volume of 35.2 billion payments, with an aggregate value of $93 trillion. The network continues to grow, having processed 33.6 billion payment transactions in 2024, representing a 4.8% increase year-over-year, with a total value of $86.2 trillion. A rapidly expanding segment within ACH is Same Day ACH, which facilitated 1.2 billion payments totaling $3.2 trillion in 2024.

Credit, Prepaid, and Debit Card-Based Processing Services

The broader U.S. payment processing solutions market, which encompasses credit, debit, and prepaid card processing, generated revenues of USD 16,000.3 million in 2023. This market is projected to reach USD 36,752.5 million by 2030, demonstrating a compound annual growth rate (CAGR) of 12.6% from 2024 to 2030. Credit cards were identified as the largest revenue-generating payment method within this market in 2023. The overall United States Payments Market size is projected to grow from USD 1.5 trillion in 2025 to USD 3.35 trillion by 2031, with a CAGR of 14.36% between 2026 and 2031. Credit cards alone accounted for 40.62% of point-of-sale (POS) transaction value in 2025. While specific recent market sizes for debit card processing revenue were less distinct, the debit card segment dominated the global payment processing solutions market in 2019 and was expected to contribute 37.7% of the global market share in 2025.

Prepaid and Incentive Card Issuance Services

The U.S. prepaid card market is experiencing significant growth. Its size was estimated at USD 1.76 trillion in 2024 and is projected to reach approximately USD 10.62 trillion by 2034, growing at a CAGR of 19.69% from 2025 to 2034. Another projection indicates the U.S. Prepaid Card Market Size will grow from USD 1.48 trillion in 2023 to USD 10.72 trillion by 2034, at a CAGR of 19.4%. North America held the largest share of the global prepaid card market in 2024, at 61%. More specifically, the U.S. Gift Card and Incentive Card Market was valued at USD 207.09 billion in 2025 and is estimated to grow to USD 300.73 billion by 2031, at a CAGR of 6.42% from 2026 to 2031. Corporate B2B purchases constituted 64.85% of the U.S. gift card and incentive card market size in 2025.

Electronic Bill Presentment and Payment (EBPP) Services

The United States electronic bill presentment payment market was valued at USD 25.86 billion in 2024 and is anticipated to reach USD 47.58 billion by 2030, with a CAGR of 10.53%. Another estimate places the market size at USD 54.45 billion in 2025, projected to reach USD 117.09 billion by 2034. Electronic bill payment is a dominant product within this market, holding a 52% share in 2025.

• Growth in ACH and Complementary Services: The Automated Clearing House (ACH) and complementary services segment is expected to remain a significant revenue driver. This segment has consistently demonstrated strong growth in electronic transaction volumes and revenues, with management noting it as Usio's highest-margin business. The company expects this momentum to continue and expand its presence within more accounts, particularly as the Usio ONE initiative rolls out.
• Expansion of PayFac Business within the Card Segment: The Payment Facilitation (PayFac) business is a strong growth engine for Usio's card processing services. The company is actively onboarding new Integrated Software Vendors (ISVs), which has led to substantial increases in processing volumes and associated revenues. Efforts are concentrated on further developing this high-growth area.
• Usio ONE Initiative and Cross-selling: The "Usio ONE" initiative is a strategic effort to integrate Usio's diverse payment products and services under a unified brand and operational approach. This initiative aims to streamline sales and marketing, fostering significant cross-selling opportunities and increasing product adoption among existing clients, thereby driving growth and customer stickiness.
• Launch and Growth of New Payment Technologies: Usio is investing in and experiencing robust growth from new payment technologies, such as PINless debit. This service, particularly popular with mortgage and FinTech clients, offers higher margins and contributes significantly to revenue. The company is also exploring the adoption of other emerging payment technologies, including the FedNow service, to expand its offerings.
• Strong Pipeline of New Business and Accelerated Client Implementations: Management frequently highlights a robust pipeline and backlog of signed deals and pending implementations. Converting these opportunities into active programs by accelerating and improving client implementations across all business lines is expected to represent a step change for Usio's future revenue and earnings.

Share Repurchases

• Usio spent $1.4 million on share buybacks during fiscal year 2024.
• The company repurchased $750,000 worth of shares year-to-date as of Q3 2025, accounting for over 500,000 shares.
• The Board of Directors renewed the Share Repurchase Program on March 26, 2025, authorizing an additional $4 million in repurchases and extending the program's expiration to May 15, 2028.

Share Issuance

• As of December 31, 2024, Usio issued common stock under equity incentive plans totaling $136,276 and under employee stock purchase plans totaling $11,507.

Outbound Investments

• Usio acquired substantially all of the assets of PostCredit, Co. in November 2025.
• As of August 2025, Usio was exploring opportunities in the merger and acquisition market to accelerate growth.

Capital Expenditures

• Usio invested $992,000 in capital expenditures during fiscal year 2024, focusing on long-term assets and infrastructure.
• Net cash used by investing activities for the nine months ended September 30, 2021, was $999,493, primarily driven by capitalized software development costs and other capital investments for business growth.
• In 2025, Usio made meaningful investments in its go-to-market strategy and technology stack.