Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.
Data for today’s episode is provided by Mercator Advisory Group’s report – Crowded Payment Gateway Landscape Offers Much To Online Merchants, Part 2: U.S. Market Company Profiles
The Framework to Analyze Payment Gateways:
- Mercator estimates US retail e-commerce to have a 13% compound annual growth rate.
- E-commerce retail sales, without online travel, will see growth, which Mercator Advisory Group estimates to be $862 billion by 2022.
- COVID-19 has accelerated the ecommerce shift and merchants of all categories rush to integrate.
- Vectors to consider when deciding a payments gateway: Merchant size & vertical focus, integration & onboarding, and cross-border functionality.
- Vectors (continued): POS terminal integrations, funding, data, security.
- As a framework for decision-making considerations, merchants can manage gateway selection as a three step process:
- 1) Transaction Processing, 2) Revenue Optimization, 3) Merchant Business Solutions
About Report
The good news for online merchants, large and small, is that they have a wide choice among payment gateway vendors in the U.S. market. This bodes well for businesses who gain negotiating power as they deal with many gateways competing to offer the best array of online payment services. A downside for merchants is that the gateways have a propensity to check the same boxes of online payment acceptance features in marketing their services. So, distinguishing among a list of gateway vendors can become a tedious exercise for many merchants. A new research report from Mercator Advisory Group, Crowded Payment Gateway Landscape Offers Much To Online Merchants, Part 2: U.S. Market Company Profiles, features U.S. market payment gateways and provides a process and decision making criteria for merchants to use in a payment gateway selection.
“The e-commerce sales channel has grown exponentially, and the number of payment gateways in the U.S. market has followed the demand. Many are fintechs that began in the last 10 years, while others are found within legacy merchant acquirers, processors, card networks, and issuers. Further, new entrants are coming into the market via the start-up route or from overseas competitors. Online merchants are winners in that they have never had such a large choice of vendors to choose from. But many merchants find the selection process among payment gateways to be daunting,” commented Raymond Pucci, Director, Merchant Services Practice at Mercator Advisory Group, the author of this report.