Web Hosting Companies: The Undervalued Partner in E-Commerce Merchant Acquiring
Report Summary
Web Hosting Companies: The Undervalued Partner in E-Commerce Merchant Acquiring
Merchant acquirers should explore partnerships with Web hosting companies in order to streamline processes and increase cross-selling opportunities.
Boston, April 27, 2011 – A new report from Aite Group sheds light onto the functionalities that merchants value in their Web hosting partners. Based on Aite Group interviews with 53 vendors that provide Web hosting services to merchants, the report reveals the extent to which merchants demand security, fraud prevention functionality, and integrated payments solutions, as well as how merchant acquirers can leverage Web hosting companies to win merchant business.
Web hosting companies offer merchants a way to connect with their shoppers online, but not all of these companies provide payments integration—an absence of functionality that is acceptable for some targeted merchants. Offering robust tools for both fraud prevention and data security, however, can be a key competitive advantage. Merchant acquirers should explore opportunities to build or partner with Web hosting companies that specialize in data security and fraud prevention, and capitalize on merchants’ need to use the same vendor for these services.
“Shockingly, a majority of Web hosting companies see fraud prevention and data security as the same thing,” says Adil Moussa, senior analyst with Aite Group and co-author of this report. “This misconception perpetuates the threat of fraud for merchants that use these Web hosting companies. Merchant acquirers that can demonstrate strength in both areas and educate merchants on the distinctions and importance of each can differentiate themselves from the competition.”
This 15-page Impact Note contains nine figures. Clients of Aite Group's Retail Banking service can download the report.