Top 6 Focus Points For Merchant Acquirers: A Guide To Long-Term Success

In today’s fast-paced digital world, businesses are under constant pressure to provide seamless, hassle-free customer experiences. For merchant acquirers, the stakes are even higher. Staying ahead means adapting to rapidly evolving trends, meeting rising customer expectations, and delivering innovative solutions.

From adopting all-in-one payment platforms to addressing pay-by-bank disruptions and creating frictionless experiences, success lies in balancing strategy, innovation, and execution. In this blog, we’ll dive into the top 6 focus points every acquirer needs to master to drive value, reduce costs, and outpace the competition in this dynamic market.

FOCUS POINT 1: One-Stop Solutions: Driving Value for Merchant Acquirers

The shift to one-stop solutions isn’t just a trend—it’s a strategic imperative. According to a 2022 McKinsey survey, small businesses in the U.S. are willing to spend up to $10,000 annually on value-added services, signaling a clear demand for tools that drive growth, efficiency, and customer retention.

Why One-Stop Solutions Matter

Merchant needs are evolving, and acquirers must adapt to stay relevant. A one-stop solution consolidates payment processing, analytics, and business support services, simplifying operations for merchants and helping them grow. By meeting diverse needs under one roof, acquirers can foster stronger, longer-lasting partnerships.

Key Features of a Successful One-Stop Solution

1. Integrated Payments: Offer seamless, omnichannel payment acceptance with advanced fraud prevention and intelligent routing. This ensures merchants can cater to diverse customer preferences across in-store, online, and mobile channels.

2. Data-Driven Insights: Analytics tools are game-changers for merchants. By providing actionable insights into customer behavior, sales trends, and operational performance, acquirers empower businesses to make smarter decisions.

3. Value-Added Services: Expand beyond payments to offer services that enhance merchant operations:

• Loyalty Programs: Increase customer retention and repeat sales.
• Marketing Tools: Enable merchants to create targeted, effective campaigns.
• Payroll and Financing: Simplify back-office management and support cash flow needs.

4. Industry-Specific Customization: Tailor solutions to meet the unique demands of different industries. For example, retail merchants may require inventory management tools, while e-commerce players benefit from subscription billing capabilities.

FOCUS POINT 2: Streamlined Product Propositions- Unlock Cost Savings and Boost Sales

Merchant acquirers are grappling with the complexity of overlapping solutions caused by years of mergers and fragmented growth. Simplifying product propositions isn’t just a smart move—it’s essential for unlocking cost savings, boosting sales, and enhancing merchant satisfaction. Here’s how acquirers can turn simplicity into a strategic advantage.

Why Simplification Matters for Merchant Acquirers

Complex solutions confuse merchants and hinder sales teams. Streamlining product offerings not only enhances operational efficiency but also strengthens relationships with merchants. A clear and concise approach helps acquirers stand out in a crowded market while driving profitability.

1. Declutter with a Clear Product Strategy

Merchants value simplicity. Acquirers must develop a product strategy that eliminates redundancy and presents solutions in an easy-to-understand manner. This clarity builds trust, improves communication, and accelerates the sales cycle. When merchants can quickly grasp the benefits of your offerings, adoption rates increase, driving growth.

2. Invest in Platform Rationalization

Years of growth often leave acquirers managing multiple payment gateways and platforms. Consolidating these systems into a unified payment orchestration layer can significantly reduce operational costs and improve efficiency. Retiring outdated systems and focusing on a single, robust platform streamlines operations and delivers a seamless experience for merchants.

3. Boost Sales with Simplified Integration

Streamlined solutions empower sales teams. A unified platform reduces the time spent explaining complex integrations and enables faster onboarding. Multi-acquiring options, value-added services, and seamless upgrades become frictionless, giving sales teams the confidence to close deals quickly and effectively.

4. Enhance the Merchant Experience

Merchants are at the core of the payments ecosystem. Simplified product offerings, transparent pricing models, and effortless integration processes lead to a superior merchant experience. This not only fosters loyalty but also sets your solutions apart in a competitive marketplace. Happy merchants mean stronger relationships and more sustainable revenue streams.

FOCUS POINT 3: Pay-by-Bank Revolution- Essential Insights for Merchant Acquirers

The payment industry is undergoing a seismic shift with the rise of pay-by-bank payments, also known as open banking payments. This innovative payment method promises faster settlements and reduced fees, making it an attractive option for merchants and acquirers alike. But with great potential come unique challenges. Here’s everything merchant acquirers need to know about this revolutionary trend.

Why Pay-by-Bank Matters for Merchants

For merchants, especially those managing high-value transactions, pay-by-bank offers significant benefits:

• Lower costs: By bypassing card networks, merchants save on interchange fees.
• Real-time settlements: Near-instantaneous payment processing is ideal for sectors like B2B transactions, government payments, brokerage fees, and bill payments. This efficiency and cost-effectiveness make pay-by-bank a game-changer in sectors with high-value or recurring transactions.

Challenges Slowing Consumer Adoption

While merchants are quick to see the value, consumer adoption faces some hurdles:

• Friction at checkout: In-store pay-by-bank options need to match the speed and ease of contactless payments.
• Limited buyer protections: Unlike card payments, pay-by-bank transactions often lack features like chargebacks or purchase protection, making consumers wary.
• Delayed confirmations: Some open banking payments don’t provide instant transaction confirmations, creating uncertainty for merchants handling large volumes.

Opportunities for Merchant Acquirers

Despite these challenges, merchant acquirers are uniquely positioned to lead the pay-by-bank revolution. Here’s how:

1. Educate and Build Trust: Acquirers can collaborate with merchants to highlight the benefits of pay-by-bank payments, such as lower fees and faster settlements. Educational campaigns, detailed FAQs, and clear instructions at checkout can help ease consumer concerns.

2. Offer Incentives for Early Adoption: Encourage merchants to share cost savings with consumers by offering discounts or loyalty rewards for using pay-by-bank. Incentivizing early adoption builds momentum and drives broader acceptance.

3. Simplify the User Experience: Seamless integration of pay-by-bank options into existing checkout processes is essential. Partnering with technology providers to enhance payment interfaces can help bridge the gap between consumer expectations and new payment methods.

FOCUS POINT 4: Seamless Customer Experiences-The Ultimate Competitive Advantage for Acquirers

For merchant acquirers, providing seamless customer experiences is no longer a luxury but a necessity to remain competitive. Let’s explore why these experiences matter and how acquirers can gain an edge in the payments ecosystem.

Why Seamless Payment Experiences Are Critical

The payment experience can make or break a sale. Research shows that cart abandonment often stems from clunky checkout processes or unavailable payment methods. Customers expect:

• Flexibility: Support for diverse payment options, including digital wallets, BNPL, cryptocurrencies, and loyalty points.
• Speed: Fast and efficient payment flows to keep pace with their busy lives.
• Security: A safe environment that protects their sensitive information.

In fact, with over 350 alternative payment methods (APMs) available globally, the need to offer choices tailored to customer preferences is more urgent than ever.

The Benefits of a Seamless Payment Journey

Boost Customer Retention: An intuitive and inclusive payment experience builds trust and encourages repeat business. Customers are more likely to return when their preferred payment methods are readily available.

Increase Conversion Rates: Streamlined checkout processes reduce friction and improve conversion rates, ensuring fewer shoppers abandon their carts.

Strengthen Brand Loyalty: Delivering convenience and trust fosters positive experiences, transforming one-time shoppers into loyal advocates.

How Acquirers Can Lead the Way: To stay ahead, merchant acquirers need to prioritize seamless customer journeys:

• Invest in Payment Technology: Use advanced payment orchestration platforms to support multiple APMs and optimize routing for faster transactions.
• Enable Omnichannel Experiences: Ensure a unified experience across physical stores, online platforms, and mobile apps.
• Focus on Security: Leverage tokenization, fraud detection, and PCI compliance to instill confidence in every transaction.

FOCUS POINT 5: Bold Strategies for Merchant Acquirers in Successful Mass Rollouts

Scaling a solution from trials to mass adoption is a critical challenge for merchant acquirers. Success hinges on delivering seamless customer experiences while addressing operational pain points. Let’s explore bold strategies to navigate mass rollouts effectively and unlock growth opportunities.

The Challenges of Early Trials

Scaling up from early trials often reveals roadblocks that hinder smooth rollouts:

• Complex User Journeys: Lengthy checkout processes frustrate users. For instance, European businesses face abandonment rates exceeding 60% due to checkouts lasting over three minutes.
• Limited Adoption: Gaining traction beyond early adopters can be tough. New users often hesitate to embrace unfamiliar solutions.
• Integration Gaps: Fragmented experiences due to poor integration, such as multiple screens in a payment journey, create friction and reduce conversions.

Strategies to Ensure Successful Rollouts

Engage Customers Early in Their Journey: Capturing attention early in the customer journey reduces friction. Solutions like PayPal’s integration of Honey, which applies discounts during checkout, demonstrate the power of adding value early. By engaging users before checkout, acquirers can enhance satisfaction and drive adoption.

Optimize Integration with Orchestration Platforms: Streamline complex payment processes with advanced orchestration platforms. These platforms enable merchants to dynamically present payment options based on customer preferences, location, and behavior, creating a tailored and frictionless experience.

Leverage Real-Time Insights: Every trial phase provides valuable data. Continuously test, refine, and optimize based on user feedback. Iterative improvements ensure the final product aligns with user expectations and market needs.

FOCUS POINT 6: Modernizing Payment Platforms- The Power of Cloud-Native Solutions

For merchant acquirers, downtime has escalated from a mere technical hiccup to a reputational and financial disaster. The answer to this growing challenge lies in cloud-native solutions—modern architectures designed for today’s high-demand payment ecosystems.

The Cloud-Native Edge

• Adopting cloud-native architectures offers acquirers a powerful way to tackle these challenges head-on:
• Unmatched Reliability: With distributed infrastructure, cloud-native platforms reduce downtime and ensure high availability.
• Effortless Scalability: Elastic systems scale dynamically to accommodate peak transaction volumes.

Proven Strategies for Modernization

Hollow the Core: Acquirers can retain their legacy core systems while layering modern orchestration solutions on top. This approach minimizes risk while enabling incremental improvements.

• The Strangler Fig Method: Run microservices alongside the existing system, gradually replacing outdated components. This phased approach reduces disruption while enabling transformation.
• Full Platform Overhaul: For acquirers ready for a leap, rebuilding the platform as a fully cloud-native, API-first ecosystem ensures long-term scalability and innovation. Though resource-intensive, the results often outweigh the initial investment.