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April 23 2018 • Issue 18:04:02
Growth by acquiring:
opportunities and challenges
"Merchant acquirers need to help merchants apply
technology effectively to reduce errors, obtain better
information and remove activities that don't add value,"
stated Thomas McCrohan, Managing Director at Mizuho
Americas research. "Customer value in acquiring has
shifted to adding digital capabilities, from streamlined
account onboarding to real-time data analytics that
merchants can use to manage their businesses."
Raymond Pucci, Associate Director of Research Services
at Mercator Advisory Group, said acquirers have three
options for improving technical proficiencies: they can
build capabilities in-house, partner with specialists or
acquire technology firms. By choosing the third option,
companies can improve time-to-market while achieving
economies of scale, he noted.
More mergers predicted
By Dale S. Laszig Two years ago, Pucci predicted U.S. acquirers would
continue to seek growth opportunities by entering new
ergers and acquisitions have long been a markets and specializing in vertical applications. In
staple of the payments industry, where com- Mercator's June 2016 report, Merchant Acquiring's Ecosystem:
panies quickly adapt or perish. Industry Evolving Beyond Transactions, he noted escalating M&A
M analysts expect the trend to continue, as activity and heavy technology investments, including
digital innovations change the way people shop and buy. the Global-Heartland and TSYS-TransFirst mergers.
Consumers are demanding fast transactions and deliver-
ies; merchants need smart, agile systems and advanced
technologies to address these requirements.
Contributed articles inside by:
"Fintechs are simplifying financial services," stated Liz
Elder, Senior Research Consultant at L2 Inc., a global digital Steven Feldshuh ...................................................................................38
research firm. "Legacy brands that rely on their market Don Bush .................................................................................................40
share are surprised and even flabbergasted that people
are flocking to these upstarts. But fintechs are nimble Ryan Frere ...............................................................................................41
and digitally savvy and legacy players are struggling to Brandes Elitch ........................................................................................42
catch up. Big brands throw money at the problem, while
something else falls by the wayside. They may excel in TOC on page 3
social media but not ecommerce."
Continued on page 34
