February 5, 2015

Acquirer Commoditization Turning the Corner

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Can acquirers turn into value creators, and away from commoditization?>

The payments acquiring service has become commoditised as competition between acquirers and alternative players heats up, regulation continues to impact, and merchants battle their own business challenges – subsequently fees decrease reducing margins and everything depressingly for acquirers seems to be racing to the bottom. Added to this, merchants commonly do not see acquirers as partners, but more like they feel they are forced to buy for that small but crucial payment part they must do. This leads, all too frequently, to merchants resenting being bled on their profits, paying too much and not getting anywhere near the levels they would like for both value and service.

The Holy Grail acquirers have been searching for several years now is to be able to deliver value to their merchant customers meaning helping them to enhance their own businesses, ideally in both increased revenue and profitability. Delivering this merchants will no longer resist the acquirer service and fees, but begin to view acquirers are valid partners in a joint journey of success. The more the merchants can capitalise on this value the more willingly they will be to share in the gain. Acquirers will finally be free again to index link their charges to the value of the win-win rather than be pressured tirelessly towards zero. This new dawn finally recognising a true win-win for both parties involved.

The breaking into reality of these high value Merchant-Acquirer partnerships is being realised through the use of smart Self Service acquirer portals for Merchants. This is shown in greater detail in a White Paper launched this week by RS2 Intelligent Payment Systems “How Merchants Can Profit From Their Acquirer: An Introduction To Merchant Web Portals”. Which you can download for free here