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Merchant Acquisition: Fuel for a Digital Payment System

October 16, 2020

The art of the merchant acquisition process is crucial to the success of online payment systems, and the companies that perfect this process will dominate the digital payment landscape.

The transition to cashless payment systems is accelerating globally with the growth of new digital payment platforms.

The markets for digital payment processing solutions are expected to grow exponentially over the next five years due to the increasing adoption of smartphones and government initiatives.

For these payment systems to be truly useful, digital payment systems must be widespread not only in the online world but also in 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.

Why are digital payment platforms important for merchants?

As more and more transactions become cashless, merchants need to continuously adapt their payment systems to offer flexibility. It is significant that merchants quickly introduce new payment platforms to offer customers their preferred payment options.

Merchants cannot afford to be slow and need to keep pace with the changing landscape so that payment options do not become a complex disadvantage because they lag behind in adoption.

How do you build up your merchant landscape?

There will be countless payment platforms that attempts to lure merchants to strengthen their offer to customers as a substitute for cash. It is therefore important to stand out from the crowd.

In order to attract merchants “interest, awareness of payment platforms is a key role of payment platform providers. They must create the demand to use the platform.

The payment platform provider must then create the < unk > ecosystem < unk > to use cashless payment. That means getting merchants to offer their payment solution to buy 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:

  • Make the signing up process easy using digital tools
  • Get a friendly team to contact merchants to join your platform
  • Keep document requests to a minimum; only critical documents
  • Get post-sign-up information quickly to the merchant (Starter Kit)
  • Get post-sign-up information quickly to the merchant (Starter Kit)
  • Provide easy access to support. A friendly team that wants to solve a problem or answer questions.
  • Simplified and easy post transaction settlement process
  • The incentive to the merchant for increased usage
  • Gamification for customer to drive their benefit of increasing usage
  • Ongoing promotions and advertisement to drive awareness

Attracting, retaining, and expanding your merchant landscape will be a key 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

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