MERCHANT ACQUIRING MARKET REPORT OVERVIEW

At a compound annual growth rate (CAGR) of 7.68%, the worldwide merchant acquisition industry is expected to reach USD 45 billion by 2033 from its 2024 value of USD 23 billion. When it comes to merchants gaining market share, North America leads the way.

The process by which companies receive and handle electronic payments from clients is referred to as merchant acquiring, merchant services, or payment processing. This entails using a variety of payment methods, such as digital payment alternatives, debit cards, and credit cards.

The expansion of e-commerce, digital payments, mobile wallets, globalization, and technological advancements are the main factors driving the merchant acquiring market. The need for payment processing services rose as more companies went online. The necessity for merchant acquiring services that might enable cross-border transactions grew as companies expanded internationally. There was a strong demand for payment service providers with the ability to handle payments internationally.

COVID-19 IMPACT

Pandemic Increased the Market Demand Due to Increased Demand for Contactless Payments

The market for merchant acquisition has been significantly impacted by the COVID-19 pandemic, as has every other industry. Contactless payment systems saw a spike in demand due to worries about viruses spreading through physical contact. Contactless cards, mobile payments, and other touch-free choices were preferred by both merchants and customers, which led acquiring firms to adjust and make investments in these technologies.  E-commerce flourished as physical stores were shut down or subject to regulations. Increased online transaction volumes required merchant acquirers to have strong infrastructure and security protocols. Strategies for preventing fraud also changed as a result of the move to internet buying. Some industries were particularly affected by the pandemic, including tourism and hospitality. Securing merchant accounts and adapting to shifting customer spending habits were difficulties for merchants in these high-risk sectors. Companies that acquired businesses have to review their risk management plans. During lockdowns, many businesses, particularly smaller ones, experienced financial pressure. Merchant acquirers had to deal with a rise in chargeback and refund demands. During this time, flexibility and assistance for struggling merchants became essential.

LATEST TRENDS

Increasing Demand for Digital Payments to Fuel Market Growth

One notable trend has been the growing use of digital payments, such as contactless and mobile wallets. In order to satisfy consumer preferences, retailers are adjusting to accept a variety of payment options. In order to provide a more fluid and effective transaction process, merchants are looking for integrated payment solutions that work flawlessly with their current systems. Security is still a major worry due to the increase in cyberthreats and data breaches. Merchant acquirers are concentrating on putting strong security measures in place and making sure that regulations like PCI DSS are followed. Online payment processing services are in greater demand as a result of the expansion of e-commerce. In order to meet the unique requirements of online firms, merchant acquirers are broadening their product offerings. Cross-border payment solutions are becoming more and more necessary as companies grow internationally. Merchant acquirers are building the capacity to handle currency translation issues and enable global transactions. Alternative payment methods including digital wallets, buy now, pay later (BNPL) services, and cryptocurrency payments are becoming more popular in addition to conventional credit and debit cards.

MERCHANT ACQUIRING MARKET SEGMENTATION

By Type

According to type, the market can be segmented into E-commerce, M-commerce.

By Application

Based on application, the market can be divided into Government, Commercial, Others.

DRIVING FACTORS

Growth of E-Commerce to Drive Market Growth

The growth of e-commerce has been a key driver for merchant acquiring market growth. Online businesses and marketplaces rely heavily on electronic payment solutions, and merchants need reliable acquiring services to facilitate online transactions. The increasing trend toward digital payments, driven by factors such as convenience, speed, and security, has been a significant driver. Merchants need to adapt to these changing consumer preferences by accepting various digital payment methods.

Globalization and Cross-Border Transactions to Accelerate Market Demand

As businesses expand globally, there is an increasing demand for acquiring services that support cross-border transactions. Merchants seek acquiring solutions that provide seamless payment processing across different currencies and regions. The adoption of contactless payment methods, including contactless cards and mobile wallets, has been on the rise. Merchants need acquiring services that support these technologies to cater to customers who prefer quick and secure contactless transactions. The increasing concern about cybersecurity and fraud has led to a demand for merchant acquiring services that offer robust security features. Merchants are looking for solutions that can help prevent fraudulent transactions and protect sensitive customer information.

RESTRAINING FACTORS

Security Concerns to Restrict Market Growth

Security is a critical issue in the payments industry. As technology evolves, so do the methods of fraud. Merchant acquirers need to continually invest in advanced security measures to protect against data breaches and fraudulent transactions. Strict regulatory requirements and compliance standards can pose challenges for merchant acquirers. Adhering to regulations related to payments, data security, and anti-money laundering can be complex and costly.

MERCHANT ACQUIRING MARKET REGIONAL INSIGHTS

North America Anticipated to Drive Market Expansion owing to Presence of Key Players

North America holds leading position in Merchant acquiring market share due to the mature financial infrastructure and widespread adoption of electronic payments. The USA, in particular, has a well-established merchant ecosystem, with companies like Visa, Mastercard, and various independent merchant acquirers. The increasing penetration of digital payments, expanding e-commerce markets, and rising smartphone adoption contribute to the growth of market in this region.

KEY INDUSTRY PLAYERS

Adoption Innovative Strategies by Key Players Influencing Market Growth

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio.

The top key players in the market are CUP Merchant Services, Elavon, Wells Fargo Merchant Services, Chase Paymentech Solutions, Global Payments, FIS, and Bank of America Merchant Services. The strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the market competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession over market shares by the key players stimulates market demand.

List of Top Merchant Acquiring Companies

• CUP Merchant Services (China)
• Elavon (U.S.)
• Wells Fargo Merchant Services (U.S.)
• Chase Paymentech Solutions (U.S.)
• Global Payments (U.S.)
• FIS (U.S.)
• Bank of America Merchant Services FIS (U.S.)

REPORT COVERAGE

The size, share, and growth rate of the merchant acquiring market are examined in this study, along with its segmentation by type, application, major players, and past and present market conditions. Additionally, the research compiles accurate market statistics and expert forecasts. Along with providing in-depth insights into the current market structure and competitive analysis based on key players, it also describes the study of this industry's financial performance, investments, growth, innovation marks, and new product launches by the top companies. It also provides information on the factors that influence the demand for growth, opportunities, and risks.

Additionally, the paper outlines the impact of the post-COVID-19 pandemic on worldwide market constraints as well as a thorough overview of the industry's recovery and initiatives. To shed light on the competitive landscape, a thorough analysis of it has also been conducted.

The research based on methodologies that specify price trend analysis of target companies, data collecting, statistics, target rivals, import-export, information, and data from prior years based on market sales is also disclosed in this report. Additionally, a detailed explanation of all the important market-influencing aspects, including demand-side dynamics, value chain analysis, macroeconomic indicators, and small and medium-sized business industries, has been provided for all of the major business players. If the major players and the viability of the market dynamics analysis alter, this study could be adjusted.