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Table of Contents

Lead Story

MLS 2.0: secure, compliant, resourceful, discoverable

Dale S. Laszig

News

Industry Update

News Briefs

Features

The Green Sheet Advisory Board What it takes to thrive in payments today - Part 3

TSG's new directory of U.S. acquirers

Views

Visa, Mastercard aim to accelerate B2B card payments

Patti Murphy
ProScribes Inc.

Education

Street SmartsSM:
Archives: Veritably valuable added services

Dee Karawadra
Impact PaySystem LLC

Legal ease: ISO contract management in the digital age

Adam Atlas
Attorney at Law

Help your merchants increase customer loyalty

Barry Davis
Womply

Three ways to take your ISO to the next level

Jordan Olivas
RS Software Inc.

Company Profile

CardX

New Products

Unified security management, compliance solution

USM Anywhere
AlienVault Inc.

Inspiration

The sales door: close it or leave it open?

Departments

Letter from the editors

Readers Speak: Machine learning can safeguard global payments

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

June 11, 2018  •  Issue 18:06:01

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TSG's new directory of U.S. acquirers

The Strawhecker Group recently released its latest report on U.S. merchant acquirers. Titled Directory of U.S. Merchant Acquirers, it provides data on more than 256 acquirers and ISOs, including processing volume, number of transactions, technology, mergers and acquisitions (M&A) activity, and other factors contributing to growth.

Most noteworthy to Jared Drieling, TSG's Senior Director of Business Intelligence, is that Worldpay now occupies the No. 1 spot. "There was a large merger between Worldpay and Vantiv and now, under the Worldpay brand, it has become the largest merchant acquirer," he told The Green Sheet.

He added that M&A activity has been brisk over the past 12 to 18 months, particularly among the top 50 acquirers, which are eager to gain technological assets. One thing that hasn't changed, however, is that the industry is top heavy. "In the U.S, there's $5.5 trillion in card spending each year, and the top 10 acquirers process about 80 percent of all those dollars," Drieling said.

Smart strategies

That doesn't mean significant growth isn't occurring further down the list, particularly for the companies that have partnered with or acquired ISVs and/or state-of-the-art gateways and are approaching merchants with comprehensive business solutions, rather than leading with payment processing. Experts have long discussed the need to make this transition. The data from TSG indicates companies doing so are succeeding.

Reflecting upon the traditional acquiring model, Drieling said, "Upgrades, cost, service problems, software that's not interconnected, different portals that aren't talking to each other – these can be a nightmare for merchants."

He said what leads to excellent outcomes for all is to come in with a "what can we do for you?" approach. "Ask, 'How can we make your business more efficient?'" he said. "Let them know they no longer have to access multiple portals but instead can use one touchscreen to operate and view everything in real time. And with cloud-based features, the merchant can be on vacation and still have access to all information."

Square, which with $60 billion in processing volume hit the No. 12 spot, exemplifies this shift. "Square has been moving up quite rapidly," Drieling said. "Clearly, it's no longer a dongle company; it's much more a software-focused company. They're diversifying. … And they're no longer focused just on micro merchants."

Opportunity also exists in offering integrated business services to relatively untapped markets, like B2B and government payments, as well as merchants in traditional verticals who have shied away from traditional electronic payments, Drieling noted. "Overall, the payments industry is very healthy," he said. "It's a tide that's raising all boats."

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | USAePay | Humboldt Merchant Services | Impact Paysystems | Electronic Merchant Systems