The merchant acquiring industry is subject to significant and ongoing evolution and, due to various factors, is facing a comprehensive reconfiguration. The emergence of online channels, new business models, such as marketplaces, and the overall ongoing shifts in the acquiring value chain have led to the development of a variety of business models focusing on defined sections of the acquiring transaction lifecycle. Value propositions have emerged, closely address merchant needs, with a new range of players operating across multiple business models in parallel. While electronic payments are keeping increase their reach and frequency of use, non-card payment types are growing in relevance while similarly there is a slow fragmentation of volumes with some smaller acquirers growing marginally faster than large incumbents.
This is a challenging competitive context with a potential upside for those companies able to position themselves rightly in a growing market. Success will be subject to the ability to respond to merchant needs, adapting business models to fit key strategic priorities outlined in our report available for download below.