Financial Transaction Processing NAICS 522320

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Industry Summary
The 3,500 financial transaction processing companies provide payment processing, reserve and liquidity, and check or other financial instrument clearinghouse services. As intermediaries between buyers and sellers, clearinghouses validate, settle, and finalize financial transactions. Payment service providers (PSP) act as middlemen between banks, merchants, and card networks and aggregate credit card and other forms of electronic payment processing for tens of thousands of small to medium-sized businesses. Peer-to-peer (P2P) payment systems, which include money transfer applications, allow users to send money directly to another user through a linked bank account.
Extensive Regulation and Oversight
Because financial transaction processing deals directly with money and private accounts, the industry is subject to extensive regulation and oversight by government and other organizations.
Industry Concentration and Competition
The payment processing industry is highly competitive and dominated by large companies.
Recent Developments
Aug 20, 2025 - New York State Sues Zelle For Fraud
- The New York Attorney General’s office has sued e-payment platform Zelle for $1 billion, accusing the platform of not doing enough to secure its system against fraudsters. The service is owned by seven of the largest US banks, including US Bank, Capital One, and Wells Fargo, among others. The suit claims Zelle and its banking backers know fraud occurs on the site, have ignored customer complaints, and have resisted implementing safeguards, allowing bad actors to run rampant on the platform. Zelle denies the accusations, claiming that the fraud occurs at the point a customer is tricked into sending money, rather than originating on the website itself. The New York AG counters that the fraud encompasses hacking into accounts, tricking customers into buying non-existent goods, and scammers impersonating banks or utilities and asking for payments. The suit demands Zella beef up security and pay restitution to defrauded New Yorkers.
- Paper checks draw closer to extinction as the US government transitions to a fully digital payment system which will permanently alter how federal payments are made. As of June 2025, out of 69 million social security recipients, only about 418,000 of those households receive payments through paper checks. An executive order from the Trump administration mandates that all federal payments - intergovernmental payments, benefit payments, tax refunds, and government vendor payments - become digital by September 30, 2025. The order intends to eliminate the costs of processing paper checks and reduce instances of fraud. Paper checks are susceptible to fraud through mail theft and are 16 times more likely to be reported lost, stolen, or undeliverable than electronic payments. The government will make exceptions for certain beneficiaries who do not have access to electronic banking or require emergency funds.
- Financial transaction processing industry employment stayed flat in April 2025 as AI plays an increasingly larger role to play in the industry and displacing some workers. Research from International Data Processing predicts that the financial services industry will spend $632 billion by 2028, of which financial transaction processing will account for 20%. Fraud detection has emerged as the primary benefit of AI. Mastercard asserts that last year it used AI to protect about 125 billion payment transactions, a scale that wasn’t previously possible. Automation is also a key benefit of AI with industry players able to simplify tedious accounting and compliance tasks and speed up transaction processing. J.P. Morgan predicts AI’s next application will be embedded finance, which is the inclusion of payment systems into non-financial apps and services.
- Social media company X announced in late January 2025 that it had signed a partnership with Visa for the credit card giant to be the main financial partner for X Money, its coming payment platform. It is part of X’s quest to become an “everything” app and compete with the likes of CashApp and Venmo in not only business transactions but peer-to-peer payments as well. Visa is keen on expanding its digital services with a particular focus on payments to influencers, content creators and marketplaces. A survey of social marketplaces from Visa showed that two out of three merchants wait too long for payment and it negatively impacts growth. Payment systems have been available across social media apps for years, but the X Money service is the first time such a technology is built directly into a social platform.
Industry Revenue
Financial Transaction Processing

Industry Structure
Industry size & Structure
The average financial transaction processing services provider operates out of a single location, employs about 36 workers, and generates about $32.7 million annually.
- The financial transaction processing industry consists of about 3,500 firms that employ about 126,300 workers and generate over $115.4 billion annually.
- The industry is concentrated; the top 50 companies account for over 85% of industry revenue.
- Automated Clearing House (ACH) operators include the Federal Reserve, the Reserve Banks, and the Electronics Payment Network (EPN). The EPN is part of The Clearing House (TCH), which is owned and operated by the world’s largest commercial banks. THC also owns the Clearing House Interbank Payment System (CHIPS), the primary clearinghouse in the US for large banking transactions.
- Owned by the Depository Trust & Clearing Corporation (DTCC), the National Securities Clearing Corporation (NSCC) clears nearly all corporate equity and bond trades in the US. The Options Clearing Corporation (OCC) specializes in equity derivatives clearing for 20 exchanges and trading platforms.
- Large companies with payment processing and/or peer-to-peer (P2P) payment operations include PayPal (Venmo), Block (Cash App, Square), Stripe, and Fiserv.
Industry Forecast
Industry Forecast
Financial Transaction Processing Industry Growth

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