Merchant Acquiring Industry Dynamics

Written by
Francesco Burelli
Steven Jacob
Torben Lötje
Firas Tarkhani
on
March 21, 2023
Von
Francesco Burelli
Steven Jacob
Torben Lötje
Firas Tarkhani
am
March 21, 2023
geschrieben

Summary

Short Summary

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.

Arkwright Acquiring Report
[PDF]