Acquirers Worried About Disintermediation

by Mercator Advisory Group 0

Digital Transactions had an article last week that featured a recent report from analyst firm Aite that focuses on the merchant acquiring industry. With a sample size of 20, Aite has determined that 95 percent of acquiring industry executives think that the card networks (i.e. Visa and MasterCard) are their competitors.

The article does indicate that “the sample group was too small to make statistically valid inferences from the findings,” however the report’s commentary reveals additional insight into the views of some of the industry’s most well known personalities, according to DT. Another source of anxiety for acquirers according to Aite: Square.

From the article:

The source of such fears is a fast-changing landscape in which all the payment card networks are looking for new revenues and markets. “Some of my clients are freaking out, without naming names,” says Adil Moussa, an analyst at Boston-based Aite. Card networks are already direct acquirers in foreign countries, he notes, and Visa Inc. moved closer to acquirers’ turf with its 2010 acquisition of e-commerce processor CyberSource Corp. On the issuing side, networks are offering services to commercial card issuers that compete with those from third-party processors, Moussa adds.

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