Meeting Merchant Needs in a Commoditized Acquiring Market: Innovate, Segment, and Bundle
Report Summary
Meeting Merchant Needs in a Commoditized Acquiring Market: Innovate, Segment, and Bundle
Merchant acquirers' best attempts to differentiate are perpetuating commoditization.
Boston, October 15, 2013 – U.S. merchant acquirers are doing their best to stand out in a commoditized market, but most seek attention by offering white-labeled, third-party products--products easily copied by others. A few acquiring organizations have managed to stand out through innovation, segmentation, and product-bundling strategies, and several others appear to be carving paths to future differentiation. Can these players follow the leaders to success and break the monkey-see-monkey-do cycle, or is commoditization doomed to repeat itself?
This Impact Note by senior analyst Rick Oglesby assesses acquiring strategies against known strategies for commoditized markets, outlines key strategies for success in a commoditized market, and provides examples of companies that have followed these strategies to success. This report is based on a February to April 2013 Aite Group survey of 491 executives from small to midsize U.S. retailers.
This 25-page Impact Note contains 15 figures and two tables. Clients of Aite Group's Retail Banking service can download the report.