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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: 2021 Outlook: Merchant Services
Six Trends to Watch in Merchant Services:
- Buy Now Pay Later will continue its rapid growth this year as COVID influences online spend and consumers tap traditional credit lines.
- Merger & Acquisitions in merchant services will continue, likely focused on ISVs, fraud management, and gateway companies.
- E-Commerce marketplaces will ride the wave of online shopping – and not just Amazon! Shopify, BigCommerce and other platforms will play an increased role.
- More e-commerce brings increased Card Not Present (CNP) fraud. Next to payment providers, fraud management vendors are merchants’ best business partner right now.
- Another EMV fuel pump compliance date fast approaches, but don’t be surprised if the target date is deferred due to the pandemic.
- Mobile sports betting will reach escape velocity, with many sports returning without fans in seats,
About Report
Five years compressed into one. That’s how Mercator Advisory Group estimates the accelerated pace of online sales growth brought on by COVID-19’s impact on merchants in 2020. The stay-at-home lifestyle has transformed the scene at most Main Streets and malls into empty storefronts and silent restaurants.
As essential retailers, groceries and big box stores have thrived, but they also owe their success to having pivoted smartly to e-commerce at a rate and scale that ensured their survival. Post-pandemic era merchants will leverage digital ordering, payment, and fulfillment as preferred ways to engage and maintain their customers.
As the calendar turns to 2021, this Merchant Services Outlook peers into the future, looking for what proactive merchants and their payments partners should do to increase their chances of success.
