Merchant Acquirers Must Readjust Their Models To Account For VARs’ And ISVs’ Increasing Influence In Merchant Acquiring. | |
Boston, August 9, 2011 – A new report from Aite Group, based on Aite Group interviews with 18 U.S. merchant acquirers and independent sales organizations (ISOs), examines how merchant acquirers and ISOs use value-added resellers (VARs) and independent software vendors (ISVs) to acquire new merchants. The report sizes VARs’ and ISVs’ market share in merchant acquisition, as well as the potential revenue opportunity for VARs and ISVs in merchant acquiring over the next five years.
VARs and ISVs play an important role in the acquisition of new merchants in U.S. merchant acquiring—a role that Aite Group expects will only grow in years to come.
This increasing reliance on VARs and ISVs will bring many advantages to the industry, such as speed in completing onboarding processes and their automation, especially where ISOs and acquirers are integrated into the processes of their VARs and ISVs. While ISOs already rely on VARs and ISVs—sometimes exclusively—to sign new merchants, they will have to readjust their models in order to account for VARs’ and ISVs’ increasing influence in merchant acquiring. “ISVs and VARs are becoming a strong ally to ISOs and merchant acquirers,” saysAdil Moussa, senior analyst with Aite Group and author of this report. “In fact, merchant acquirers, on top of competing to attract merchants directly, also now compete to become the default merchant acquirer on software solutions created by ISVs.”
The report presents a brief comparison of four different ISOs and acquirers—M&T Bank, Mercury Payment Systems, Payment Alliance International (PAI), and Payment Processing Inc. (PPI)—to illustrate the impact of the VAR/ISV sales channel on ISO and acquirer performance.
This 18-page Impact Note contains 13 figures. Clients of Aite Group's Retail Banking and Wholesale Banking services can download the report by clicking on the icon to the right.
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for additional information, please contact: Aite Group SalesTel: +1.617.338.6050sales@aitegroup.com | |
