In recent years, merchant acquirers are witnessing an incredibly fast growth of the payment processing industry. According to McKinsey, 2017’s results are overwhelming. For the past 5 years, the payments reach $1.9 trillion worldwide.
If you are a merchant acquirer, you cannot just sit down and relax. In any fast-growing industry, a fierce competition is growing as well. Any services being in such great demand, stimulate the apparition of new providers of these services. And each participant wants to stand out with something. New platforms are being created, various innovations are being introduced… All this can be challenging for seemingly sustainable businesses. Therefore, if you want to keep your market position, you will have to quickly respond to challenges and use all the market tools to stand out from your competitors.
Industry growth accelerates competition for merchant acquirers
The emergence of a new merchant acquirer threatens the stability of your business. But the increasing number of competitors is only part of the story. Price pressure and domination of modern technology add stress. Today, those who create technology own the world. They also participate in the carve-up of this market tidbit, becoming payment intermediaries. How does this affect your business? Margins get smaller, so in order to keep your revenue amount, you will need to get more accounts.
Solution: you should work more. Look for new accounts day after day. Find new ways to circumvent your competitors, put more effort and diligence into this process. Good point is that some may even enjoy such a competitive struggle. After all, it’s interesting to elaborate a strategy, win the field and triumph.
But the main thing today is not to stop. If your business is still working fine, this does not mean that it will be so tomorrow. You need to constantly think about how you can use new technologies, study them and constantly implement them. Learn the merchant acquirers’ means leading to success, and use similar ones.
Fraudsters never sleep
Innovations in payments concern not only the speed and convenience of their processing. Fraudsters and hackers also constantly improve and optimize their arsenal. They evolve, and their moves are becoming more complex. If you hear news about another hacker’s attack, you should know your business is also at risk.
A card may be stolen from your customer, and then forget about profit. You will need to reimburse payments and prove to your customers that your security measures are at the appropriate level. But still, you risk losing a client.
Therefore, you cannot leave things to chance. It is necessary to constantly update and improve the security system. And often a new market participant begins to use the most advanced security inventions. As a result, he outrides the existing merchant acquirers and leaves his competitors far behind.
Focus your attention on data protection and develop new and modern ways to respond to cases of fraud.
Profit from challenges
Each difficulty that you encounter is also a hardship for other merchant acquirers. If your business has been successfully operating for a long time, turn this experience to your advantage. Identify the pain points of your clients and propose the best solution. Continually study market innovations and approaches that other merchant acquirers implement. Identify the ones that suit you best and tailor your business. Today, much attention needs to be paid to the client data protection.
As in any other field, the work of merchant acquirers requires constant attention and efforts aimed at development. Do not regard challenges as problems. Consider them as opportunities to stimulate the growth of your company. Have your finger on the pulse of events in the market, respond in time to its dynamic changes, and this will set you apart from other merchant acquirers.