Fintech

Take Rate

Revenue earned as a percentage of total transaction volume.

Definition

Take rate (also called net revenue yield or monetization rate) measures how much revenue a payment or marketplace company earns per dollar of volume processed. It equals total revenue divided by total payment or transaction volume. Take rates vary significantly by business model and transaction type.

Formula

Take Rate = Revenue / Total Payment Volume × 100

Why It Matters

Take rate reveals a fintech's pricing power and competitive position. Declining take rates may signal competitive pressure, while stable or rising rates suggest pricing power and value-added services that justify fees.

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