The demarcating lines between business areas controlled by different market participants are gradually fading, with participants assuming multiple roles including acquiring, processing and technology providers. Furthermore, pressure on profit margins is encouraging acquirers to look for growth opportunities, in new locations and merchant segments.
External factors, such as regulations, are also influencing business models by increasing pressure on profitability. As a result, on one side acquirers are introducing new products and services, while on the other side focus is on enhancing capabilities such as cross-border acquiring and lowering merchant attrition. The report also provides an overview of card acquiring market size, at global as well as regional levels, and discusses the role of merchant aggregators in on-boarding micro and small merchants.
The 'Insight Report: Global Trends in Merchant Acquiring' provides insights into the changing card acceptance landscape, and emerging opportunities. It also:
- Explores the merchant acquiring structure
- Analyzes the role of aggregators in the merchant acquiring industry
- Captures key industry trends that are likely to shape the industry over the next five years
- Discusses the state of merchant acquiring across the world
- Explores key mergers and acquisitions in merchant acquiring between 2013 and 2015
- The report overs the top-line card-acquiring market size, at both global and regional level.
- It provides rankings of the top 10 merchant acquirers globally.
- It gives a snapshot of the industry structure for card transactions acquired at POS terminals.
- It covers emerging trends influencing the business dynamics of the merchant acquiring industry.
- It analyzes key growth opportunities.
- It covers key strategic deals and investments between January 2013 and May 2015.
- It explores the role of merchant aggregators in targeting untapped markets.
Reasons To Buy:
- Understand the changing dynamics of merchant acquiring and gain insights into key technology.
- Understand competitive threats from new market entrants and emerging opportunities.
- Gain insights into investment trends.
- Understand how organizations will be affected by the changing industry dynamics.
- The lines between business areas controlled by different market participants are becoming more blurred, with participants assuming multiple roles, including acquiring, processing, security and technology.
- Challenges imposed by regulation and demand for the latest technology have prompted banks to outsource or spin-off their acquiring businesses. At the same time, merchants have benefited from a drop in merchant service charges, increased payments innovation, industry-wide standardization, data analytics, omni-channel solutions and improved customer experience.
- The industry has moved towards price competition due to the commoditized nature of products and services, which has increased pressure on profit margins. The situation has become troublesome for acquirers as regulators worldwide cap debit merchant service charges (MSCs) and interchange fees in an effort to reduce MSCs.
- Card acquiring has become more accessible to micro merchants and small businesses. Technology such as mPOS and GPRS-POS are enabling merchants to accept cards without a landline connection. Advances in transactional security such as EMV, point-to-point encryption and 3D-Secure are also reducing acquirers’ risk aversion to smaller merchants.
- Another key development in the industry is the dismantling of borders and ability to offer services in multiple countries - especially in e-commerce. For instance, in SEPA there are no more country boundaries, so an acquirer can legally operate from anywhere it wants.
2 Merchant Acquiring - Defining the Industry
2.1 Industry Structure and Key Stakeholders
2.1.1 Merchant acquiring business models
2.1.2 Top 10 merchant acquirers across the world
2.2 The Global Merchant Acquiring Market
2.3 Merchant Acquiring Market - Regional Breakdown
2.3.3 Latin America
2.3.4 North America
2.3.5 Middle East and Africa
3 Gauging the Industry’s Drift
4 Where are the Opportunities?
4.1 Explore New Markets
4.2 Shift from “One Size Fits All” to Diversified and Omni-Channel Acquiring
4.3 Offer Support for Contactless Payments
4.4 Analytics to Lower Fraud Losses and Improve Efficiency
4.5 Improving Merchant Retention and Relations through Value- Added Services
4.6 Cloud Technology and Open APIs for Cost Optimization and Flexibility
5 MNO Driven Mobile Money - Is it a Brewing Threat?
6 Merchant Aggregators - Key to Unlocking Small and Micro Merchants
6.1 What Makes Aggregators Popular Among Small and Micro Merchants?
6.2 Key Considerations in Partnership with Aggregators
7 Key Findings
List of Tables
Table 1: Key Acquiring Models
Table 2: Top 10 Card Acquirers in the World, 2014
Table 3: Key Acquisitions in the Merchant Acquiring and Processing Industry (January 2013-May 2015)
Table 4: The Way Around Key Challenges
Table 5: Key Success Factors in Omni-channel Acquiring
Table 6: Contactless Payments in the UK
Table 7: Value Added Offering by Key Acquirers
Table 8: Pros and Cons of MNO-led Mobile Money
Table 9: Merchant Aggregators and Cost for Merchants
List of Figures
Figure 1: Merchant Acquiring Ecosystem in Bricks-and-Mortar Stores
Figure 2: Value and Volume of Acquired Transactions, 2010-2014
Figure 3: Value and Volume of Acquired Transactions in Asia-Pacific, 2010-2014
Figure 4: Value and Volume of Acquired Transactions in Europe, 2010-2014
Figure 5: Value and Volume of Acquired Transactions in Latin America, 2010-2014
Figure 6: Value and Volume of Acquired Transactions in North America, 2010-2014
Figure 7: Value and Volume of Acquired Transactions in the Middle East and Africa, 2010-2014
Figure 8: MSC Revenue Share of a Typical US$100 Credit Card Transaction in the US
Figure 9: CNP Fraud in Selected Countries (US$ Million), 2010-2014
Figure 10: The State of the Merchant Acquiring Industry
Figure 11: Market Shares of the Top Five Merchant Acquirers in Selected Markets, 2014
Figure 12: Drivers of M&A Activity in Merchant Acquiring
Figure 13: Card Transaction Value in Emerging Markets (US$ Billion), 2010-2014
Figure 14: Revenue Growth Expectation from Value-Added Services in Financial Services by 2016
- First Data
- Bank of America Merchant Services
- Chase Paymentech Solutions
- Global Payments
- Commercial and Industrial Bank of China
- Citi Merchant Services
- Credit Agr