Quasi-Merchant, Meet the Quasi-Terminal: Merchant Acquiring Growth via the Mobile Device
Report Summary
Quasi-Merchant, Meet the Quasi-Terminal: Merchant Acquiring Growth via the Mobile Device
The quasi-merchant will represent a US$1 billion revenue opportunity for merchant acquirers by 2016.
Boston, April 12, 2012 – A new report from Aite Group reviews the success of the mobile device as a tool for the creation of a new type of merchant relationship targeted toward a new type of customer: the “quasi-merchant.” Based on more than 40 Aite Group interviews and surveys of executives from 32 different players in the mobile POS space, including hardware and software providers, merchants, and merchant acquirers, the report identifies and analyzes key elements of a successful mobile-payment solution launch, including a product roadmap, business strategy, and technology vendor selection recommendations.
The “quasi-merchant” is any one of approximately 18 million self-employed individuals in the United States who cannot easily be found through traditional merchant acquiring sales channels and does not process enough payment volume to be considered a viable or profitable target customer when signed to a traditional merchant acquiring relationship. This group of merchants represents a US$1 billion revenue opportunity for merchant acquirers as quasi-merchant gross dollar volumes processed through the mobile POS grow from US$2.5 billion in 2011 to US$80 billion in 2016. Traditional merchant acquirers have universally launched mobile payment acceptance products, but the vast majority have seen little to no uptick in their growth. Nevertheless, a select few enterprising firms have focused heavily on the quasi-merchant segment and have devised comprehensive business strategies to successfully penetrate this market.
“While mobile technologies are transforming the merchant acquiring business and providing major growth opportunities, most merchant acquirers are not benefiting from the transformation,” says Rick Oglesby, senior analyst with Aite Group and author of this report. “Payment-acceptance players who miss out on this opportunity will not only suffer financially as others gain market share and revenue, but also risk getting stuck in their current business practices while the market transforms around them.”
The report profiles eight technology vendors that enable the payments industry to target the quasi-merchant: Adaptive Payments, Apriva, Aptys Solutions, Charge Anywhere, I Love Velvet, MagTek, Roam Data, and VeriFone.
This 29-page Impact Report contains three figures and four tables. Clients of Aite Group’s Retail Banking service can download the report.