As e-commerce continues to expand, payment gateways have become increasingly important to merchants seeking to optimize revenue, improve customer experiences, and streamline payment operations. Once viewed primarily as transaction processors, modern gateway providers now offer a wide range of value-added services including fraud management, dispute resolution, smart transaction routing, recurring billing support, data analytics, and invoicing capabilities. Research from Mercator Advisory Group highlights how these platforms are evolving into critical components of the payments ecosystem, helping merchants reduce costs, increase approval rates, and manage the growing complexity of digital commerce across consumer and business-to-business channels.
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Data for today’s episode is provided by Mercator Advisory Group’s report – Gateways Become Rising Force In U.S. Payments Industry, Part 1: A Market Overview
7 Features Merchants Need for Revenue Optimization:
- Fraud Management: This helps filter out bad transactions and reduce false positives.
- Dispute Resolution: Both costly and labor intensive for merchants, chargebacks are increasing alongside e-commerce sales.
- Smart Routing: Merchants benefit from a transaction path that chooses network, processor, and bank connections based on lowest fees, transaction speed, and local online buying practices.
- Recurring Payments: Subscription services have grown as a segment of online transactions, and merchants should look for automated payment systems as part of their customers’ transaction process.
- Card Account Updater: Cards get lost, stolen, or expire; payment gateways can refresh card information during an online transaction to limit rejected purchases.
- Data Analytics: Data reporting, sales reconciliation and forward looking analysis can be found in payment gateway solutions.
- Invoicing: Payment gateways can provide easy ways for B2B merchants to get paid and collect payments.
About Report
Payment gateways are the fastest growing part of the payments industry’s value chain and have become disruptive forces that in some instances supplant legacy payments players such as merchant acquirers and processors. Payment gateways are a high growth and an intensely competitive category within the U.S. payments industry, offering both core and added-value services aimed at both consumer and B2B online merchants. A new research report from Mercator Advisory Group, Gateways Become Rising Force in U.S. Payments Industry, Part 1: A Market Overview, provides analysis and insight on the current state of the U.S. payments gateway market, supported by a Mercator Advisory Group e-commerce sales data forecast.
“E-commerce has been the driving force in the rise of payment gateways. These firms are lean and nimble, with the DNA of fintechs. Gateways serve online merchants, enabling them to accept card payments across borders and in multiple currencies for both consumers and B2B. With a crowded field of competing gateways, merchants face a daunting task of choosing from this large vendor category that serves the U.S. market with an ever-expanding array of payment solutions,” commented Raymond Pucci, Director, Merchant Services Practice at Mercator Advisory Group, the author of this report.
