85 Percent of Merchants with Multi-Acquiring Strategy See Rise in Conversion Rates, per Global Report from ACI Worldwide & Ed...
February 08 2021 - 2:00AM
Business Wire
Eighty-five percent of merchants that have adopted a
multi-acquiring strategy have seen an improvement in conversion
rates, according to a new study by ACI Worldwide (NASDAQ: ACIW), a
leading global provider of real-time digital payment software and
solutions and Edgar, Dunn & Company, an independent payments
consulting firm. The report explores the acquiring strategies
adopted by leading global merchants and payment service providers
(PSPs) to determine the operational, financial and other benefits
derived from a multi-acquiring strategy and an acquirer-agnostic
payments gateway.
According to the report, multi-acquiring offers multiple
benefits for merchants and PSPs. In addition to increased
conversion rates, both merchants and PSPs highlight resilience and
a reduction in operational costs as the main benefits. Access to
alternative payment methods (APMs) and the ability to support
cross-border eCommerce are additional advantages.
The report finds that 57 percent of merchants and 70 percent of
PSPs worldwide currently work with multiple acquirers. Forty
percent of merchant respondents that use a single acquirer today
want to use multiple acquirers in the next 12 months, while 70
percent of PSPs plan to increase the number of acquirers they use
within the next 12 months.
“It is clear from our study that the majority of merchants and
PSPs globally recognize the benefits from multi-acquiring,” said
Benny Tadele, vice president, global merchant solutions, ACI
Worldwide. “Merchants working with multiple acquirers express a
high level of satisfaction, seeing an improvement in acceptance
rates as well as the ability to access a broader range of payment
methods. With connections to multiple acquirers, PSPs can tailor
their service more precisely to meet the needs of individual
merchants. They can provide access to the optimal mix of local and
cross-border acquirers, to acquirers best suited to handling
transactions of different types, in different verticals, and to
those supporting the payment methods most relevant to the
merchant’s customer base.”
“This study has found that merchants and PSPs are developing
different strategies to address the need to deploy robust payment
acceptance solutions,” said Mark Beresford, director, head of the
retail practice at Edgar, Dunn & Company. “Payment
orchestration that encompasses intelligent routing of payment
transactions across geographies for different payment types is now
critical for the largest merchants and PSPs.”
Summary of key survey findings for
merchants
- The top three reasons why merchants work with more than one
acquirer are resilience (21%), to reduce operational costs (18%)
and to improve conversion rates (14%).
- 85 percent of merchants that have moved to multiple acquirer
relationships have seen an increase in conversion rates, with 23
percent of respondents increasing their conversion rates by more
than 10 percent.
- 71 percent of merchants that use a multi-acquiring arrangement
are either satisfied or very satisfied with this approach.
- 40 percent of merchant respondents that use a single acquirer
wish to swap to a multiple acquiring arrangement in the next 12
months. Reasons given include the desire to gain flexibility and
access to APMs (17%), to reduce operational costs (17%) and to
build resilience in their acquiring options (15%).
- It is mainly smaller merchants that have single acquiring
relationships (30%), primarily due to cost efficiencies or
commercial reasons (60%).
Summary of key survey findings for
PSPs
- The top reasons PSPs use multiple acquiring relationships are
resilience (24%), to reduce operational costs for merchants (21%)
and to improve conversion rates (13%).
- 45 percent of PSPs see flexibility as the primary benefit of
being acquirer-agnostic.
- 66 percent of PSPs that use a multi-acquiring arrangement are
either satisfied or very satisfied with this approach.
For more information, please download the research reports:
Multi-Acquiring and the Benefits for
Merchants and Multi-Acquiring and the
Benefits for PSPs.
About ACI Worldwide
ACI Worldwide is a global software company that provides
mission-critical real-time payment solutions to corporations.
Customers use our proven, scalable and secure solutions to process
and manage digital payments, enable omni-commerce payments, present
and process bill payments, and manage fraud and risk. We combine
our global footprint with local presence to drive the real-time
digital transformation of payments and commerce.
© Copyright ACI Worldwide, Inc. 2021
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and
all ACI product/solution names are trademarks or registered
trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in
the United States, other countries or both. Other parties’
trademarks referenced are the property of their respective
owners.
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Media Contacts Dan Ring dan.ring@aciworldwide.com
781-370-3600
Katrin Boettger katrin.boettger@aciworldwide.com
781-370-3600
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