By the numbers: Netherlands-based acquirer and payment gateway Adyen reported $246 billion (EUR216 billion) in processed volume in H1, up 67% year over year (YoY), per its shareholder letter. Adyen’s processed volume growth in H1 outpaced the same period last year, when it increased 23% YoY, indicating that the pandemic-driven shift to digital payments has endured.

More key data: Other metrics underscore strong performance:

• Point-of-sale (POS) volume doubled YoY, hitting $26 billion (EUR22.8 billion) in H1 2021 and comprising 11% of total processed volume. Recent growth reflects a strong acceleration from H1 2020, when POS volume growth remained flat—and was likely spurred by global consumers returning to stores post-vaccine.
• Company revenue jumped 46% YoY, reaching $507 million (EUR445 million), up from the same period last year, when revenue increased 27%. Adyen pointed out that existing partners and regional diversification mostly drove that increase.

How we got here: Adyen identified three factors that helped achieve growth in H1.

• Minimal client churn and the addition of new ones. Adyen added big-name brands to its partner network, including Dick’s Sporting Goods, Nando’s, and Hunter. Growth from existing enterprise partners like AirBnB and Shein also translated into increased POS and processing volume for Adyen.
• Global expansion to support more merchants. In May, Adyen brought its acquiring business to Japan, and the following month to the UAE—two countries where ecommerce is expanding. It also obtained a US branch license, allowing it to expand its capabilities in the country and diversify its US business.
• Evolving consumer shopping preferences. The company pointed out that longer-term shifts in consumer shopping preferences—with consumers increasingly turning away from cash and adopting digital payments—continued to support business growth.

What’s next? New partnerships and further global expansion should help Adyen carry growth into the second half of the year.

Adyen recently partnered with Just Eat Takeaway, one of Europe’s biggest food delivery companies, to issue corporate meal expense debit cards, which come preloaded with allotted funds and can help employees to consolidate meal expenses. The partnership benefits Adyen by expanding its burgeoning issuing business and boosting its revenues.

Global expansion offers further opportunities, particularly in regions like Asia and the Middle East, where ecommerce is continuing to grow and Adyen’s presence is limited. Extending its reach can increase revenue-generating opportunities as global consumers continue to embrace digital payments.