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Merchant Acquiring’s Ecosystem: Evolving Beyond Transactions

  • ID: 3754007
  • Report
  • Region: Global
  • 29 Pages
  • Mercator Advisory Group
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Dynamics Changing in Merchant Acquiring Market


  • 2Checkout
  • Booker
  • Discover
  • Identity Mind
  • PNC
  • SunTrust
  • MORE
Merchant acquiring is an increasingly visible component of the U.S. financial services industry. It is a pivotal driver of electronic payments in e-commerce and at the point of sale. Technology advances, changing consumer buying habits, and more demanding retailer needs are bringing about new business approaches for merchant acquirers.

The payments landscape is being transformed by a new cast of industry players providing emerging services such as e-commerce gateways and value-added services such as fraud management systems. Mergers and acquisitions have altered the market share position of some of the top merchant acquirers, and more market share changes are expected to occur.

The authors most recent research report, Merchant Acquiring’s Ecosystem: Evolving Beyond Transactions examines the current state of merchant acquiring in the U.S. market and provides a set of strategic recommendations for market participants.

Highlights of this research report include:

- An overview of the current state of U.S. merchant acquiring market

- A review of the leading U.S. merchant acquirers and key factors influencing their businesses

- Estimates of market share positions with payment transactions volumes, for pre-and post-merger scenarios

- Analysis of merchants’ challenges and opportunities such as the impact of e-commerce, omnichannel, EMV transition, and security issues

- An exploration of emerging participants within the U.S. payments infrastructure

- Strategic recommendations for merchant acquirers and the threats and opportunities facing them
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  • 2Checkout
  • Booker
  • Discover
  • Identity Mind
  • PNC
  • SunTrust
  • MORE
1. Executive Summary

2. The State of Merchant Acquiring
- No Longer Behind the Curtain
- The Changing Payments Market Ecosystem

3. Merchant Market Landscape
- Omnichannel Becomes a Necessity

4. Merchants’ Challenges and Opportunities
- Switching Costs Give Merchants Pause
- There’s an App for That
- Added Value and Integrated Payments Solutions
- EMV Transitions Slowly but Surely
- Pre-Merger Market Share
- Post-Merger Market Share

5. Leading Acquirers’ Profiles
- First Data
- Chase Commerce Solutions
- Vantiv
- Elavon
- Worldpay
- Global Payments and Heartland

6. Threats to and Opportunities for Legacy Acquirers
- Margin Pressures Increase
- Commoditization vsecialization
- ISO Model Still Viable
- Erosion of Retail Stores’ Payment Transaction Volume
- Technology Investments Drive Revenue
- Alternative Payment Methods Ramping Up
- Emerging Competition on Several Fronts

7. Looking Ahead for Growth
- Fraud Management’s Changing Dynamics
- Analytics-Big Data in Action
- Positioning for More Cross-Selling Opportunities
- On-Demand Economy Services Fuel Payments Opportunities
- Mobile Platforms and the "Appification" of Shopping, Dining, and More
- Market Consolidation Will Continue
- The Emergence of Square in the Payments Ecosystem

8. Strategic Implications for Stakeholders
- Expand and Diversify Merchant Services
- Accelerate the EMV Transition
- Monetize Payments Transaction Data
- Continue to Pivot to Mobile and Omnichannel
- M&A and Partnership Opportunities
- Endnote

List of Figures

Figure 1: Merchants’ Expanding Ecosystem of Payments Providers
Figure 2: U.S. Annual E-Commerce Sales Growth
Figure 3: U.S. EMV Migration of Credit and Debit Cards, 2012-2018F
Figure 4: U.S. EMV Migration of POS Terminals, 2012-2018F
Figure 5: Market Acquirer Market Data (Pre-Mergers)
Figure 6: 2015 Market Acquirer Market Data (Post-Mergers)
Figure 7: Vantiv Merchant Transactions
Figure 8: Legacy Acquirers' Threats and Opportunities

List of Tables

Table 1: Merchant Services Requirements
Table 2: Performance of TSYS Pre-Merger and in Combination with TransFirst
Table 3: Leading Fraud Management Firms Active in Merchant E-Commerce
Table 4: US Market Gateway Players in Payments Ecosystem
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- 2Checkout
- Adyen
- Airbnb
- Amazon
- Apple
- Bank of America
- BlueSnap
- Booker
- Braintree
- Capital One
- Celect
- Chase Commerce Solutions
- Citi
- CyberSource
- Discover
- Domino’s
- Elavon
- First Data
- Forter
- Global Payments
- Heartland
- Identity Mind
- Ingenico
- MasterCard
- NoFraud
- NuData Security
- PayPal
- Paymentwall
- Riskified
- Samsung
- Sift Science
- Simility
- Square
- Stripe
- SunTrust
- ThreatMetrix
- TransFirst
- Uber
- Vantiv
- Vesta
- Visa
- Wells Fargo
- Worldpay
- Zooz
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