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The art of the merchant acquisition process is critical to the success of online payment systems and those companies that perfect this process will dominate the digital payment landscape.
The move to cashless payment systems is accelerating across the world with the growth of new digital payment platforms.
The digital payment processing solutions markets in just APAC is expected to grow exponential over the next 5 years driven by the increasing smartphone penetration and government initiatives.
For these payment systems to bring real value to their uses, the digital payment systems need to be widely used not just in the online world but also the physical world.
A key activity for the Digital Payment Provider is to identify and attract a verity of merchants (retail stores, restaurants, hairdressers, etc..) to their platform to truly make their payment system available across the full range of lifestyles products and services that users would traditionally have used cash or other forms of payment.
As more and more transactions become cashless, Merchants need to continuously adopt their payment systems to provide flexibility. It is very important that merchants quickly adopt new payment platforms to provide customers with their preferred payment options.
Merchants can’t afford to be slow and need to keep abreast of the changing landscape so that payment options don’t become a completive disadvantage by being a laggard in adoption.
There will be a number of payment platforms trying to attract merchants to strengthen their offer to the customer as a replacement for cash. So it is important to stand out from the crowd.
To capture the interest of merchants, payment platform awareness is a key role of the payment platform provider. They need to create the demand to use the platform.
Then the payment platform provider needs to create the “eco-system” to use the cashless payment. This means attracting the merchants to offer their payment solution to purchase goods and services.
The success of building a merchant landscape requires more than competitive transaction costs. There are some simple things to keep in mind when building your offer:
Attracting, retaining and growing your merchant landscape will be a critical success factor for your payment platform.
Making the right investment in the acquisition phase will ensure your platform has the highest opportunity to succeed.
Written by: Prasad Baskaran, Swivelt Senior Program Manager