Edgar, Dunn & Company has long been a trusted advisor to a wide variety of stakeholders in the merchant acquiring value chain.
The merchant acquiring space is becoming increasingly competitive, complex and specialised. As consumer payment preferences diversify, merchants are eager to support the often alternative payment methods their customers prefer to use, and in the form factor they desire (e.g. mobile, contactless, e-wallet, etc). Merchant demand for specialised value added services (VAS) has increased. This has supported a growing level of specialisation amongst providers who focus on selling a targeted suite of VAS to specific merchant segments. Merchant acquiring has increasingly become a commoditised business, and increased regulatory intervention has raised awareness of merchants’ payment acceptance costs leading to down-market margin pressures. It is becoming a crowded marketplace with third-party value-added service providers, mPOS providers and fintechs all challenging the status quo.