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This episode of Truth In Data provided by Mercator Advisory Group report – U.S. Merchant Acquirers Confront Disruptive Payment Industry Forces
- There are only 6 legacy acquirers left: First Data (soon to be Fiserv) – Chase – Worldpay – Global Payments – Elevon – TSYS
- Incumbent merchant acquirers face pressure including: global interchange trending down – alternative payments & fintechs – e-commerce gateways – mobile point of sale (POS)
- But legacy acquirers will continue to be the preferred option for the national retail chains – and in-store sales still accounts for 85% of retail sales
- New verticals with potential for acquierers include: healthcare – casinos & sports betting – small personal services businesses (salons, fitness) – cannabisFinding technology partners to approach verticals will be a popular strategy
examples include: First Data partners with ShopKeep for cafe’s – Worldpay partners with PaySafe for sports betting - Total share of US card volume: First Data & partners: 37% – Worldpay: 19% – Chase: 19% – Global Payments: 6% – Elevon: 5% – TSYS: 2% – Other: 12%
About this report
Changing competitive dynamics are the new normal within the U.S. payments industry. Increasing disruptive forces and new entrants present strategic threats to traditional merchant acquirers. A new research report from Mercator Advisory Group, U.S. Merchant Acquirers Confront Disruptive Payments Industry Forces, discusses major factors impacting the industry’s long-time players. Additionally, the report profiles leading merchant acquirers and estimates their U.S. market share.
“Incumbent merchant acquirers have not been oblivious to changes taking place within their segment of the U.S. payments ecosystem. Most have been offering more added-value services in recent years as well as actively pursuing mergers and acquisitions. But now, rapidly evolving consumer shopping behavior, and growth of e-commerce and mobile payments methods, have become game-changers, forcing traditional acquirers to take action or be left behind,” commented Raymond Pucci, Director, Merchant Services, at Mercator Advisory Group, and author of this report.