4 High-Growth Industries That Can Help You Build Revenue
The payments space is competitive, with new payment facilitators and ISOs entering the fray every year. Rather than merely capturing new merchants or peeling ones away from competitors, many payments companies are looking at new markets to help build revenue in ways that are conscientious and compliant. Keep reading to learn about rapidly growing industries to consider.
Help Build Your Revenue By Entering New Industries
Navigating new medium- and high-risk verticals can be tricky, especially when balancing risk and reward. The best compliance partners can help you grow your business more confidently by helping you carefully navigate these types of industries.
We’ve compiled the abbreviated list below of four high-risk industries with the potential to expand your portfolio and grow your revenue. If you want a list of even more high-risk industries, download the complete guide using the button below.
1. Help Build Revenue With Cannabidiol (CBD) — An Industry That’s Seeing Green
Cannabidiol (CBD) sales are expected to be $23.6 billion by 2025. However, as much excitement as manufacturers, investors, and payments companies have for this substance, its true potential may hinge on how the US government, at the federal and local levels, approaches its use and sale in coming years. Currently, the FDA does not support ingestible CBD products: “CBD may not be sold as food, or in food and beverage products, and cannot be marketed as a dietary supplement.”
Even so, the legal topical CBD has reached nearly $1 billion on its own and is projected to expand with a compound annual growth rate (CAGR) of 31.5% from 2023 to 2030. Making use of verification programs such as LegitScript’s CBD Certification can help you easily onboard CBD merchants whose products and businesses have been thoroughly vetted.
2. Marketplaces and E-Commerce Websites Have Some of the Highest Transaction Volumes
Collectively, marketplaces online sell trillions of dollars each year, with projections for continued growth for the foreseeable future. While the top few dozen marketplaces hold the vast majority of the market share, an increasing number of small- and medium-sized marketplaces are seeing growth, often ones that target specific products or audiences. With high transaction volumes, marketplaces can offer attractive opportunities for payment service providers.
They aren’t without their challenges, however. The diversity and volume of products and listings can make it difficult to monitor marketplaces, opening up payments companies to BRAM and GBPP fines. It’s important to have a strategy in place for marketplaces to review sellers, their products, and the marketing copy on seller pages.
3. Build Your Revenue By Investing in Newer Industries Like Online Pharmacies
Merchants facilitating the sale of prescription drugs online or through card-not-present (CNP) means are among the highest risk because of the danger that illicit, unapproved, or counterfeit drugs can pose to consumers. Even so, CNP and e-commerce drug sales are becoming increasingly popular as consumers look for convenient, reliable ways to obtain their medications.
The pharmacy market is expected to reach $108 billion by 2025 in online sales alone. As the federal government loosens rules to make medication more easily available online, the market is likely to see continued growth. Payment service providers looking to enter this market should have a strong grasp of regulations as well as reliable monitoring solutions in place. Programs like LegitScript’s Healthcare Certification can help you vet these merchants for compliance in all jurisdictions where they operate.
4. The Supplement Industry Is Booming
With a market size of more than $133 billion, the supplement industry may seem like a safe bet to generate revenue — until your first supplement merchant receives a warning letter from the FDA. These merchants may seem innocuous, but supplement marketers are known for making impermissible drug claims about their products’ ability to prevent, treat, or cure diseases. Less frequently, supplement merchants sell products with impermissible ingredients that can also draw regulatory scrutiny.
Even so, the industry has immense promise. The industry skyrocketed during the pandemic and has continued to stay strong, especially in the health and wellness space. Payment service providers who have a strong grasp of marketing claims could find this to be an attractive segment.