Merchant services for small businesses evolve beyond mobile point-of-sale payment acceptance

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Mercator Advisory Group research report identifies success factors that enable merchant acquirers to serve small businesses profitably

One of the 5 exhibits in this research report

Instant onboarding is the sizzle, not the steak. While digitized and fast merchant onboarding looks great, small businesses need to understand the fee schedule and the complete range of solutions and apps that directly apply to their specific operational needs and future growth.

Small businesses suffer from a lack of expertise, financial services, and capital, leading to a failure rate of close to 50% within five years of start-up, according to the U.S. Small Business Administration. However, the market has been difficult for merchant acquirers to serve, due to price sensitivity, high risk, and a high cost of sales. A new research report from Mercator Advisory Group, Square and Clover Delivering Merchant Services Beyond Payment Acceptance examines the success of Square and Clover as examples of a new approach to serving small businesses using marketplaces that provide choice and flexibility while using commodity hardware.

“Instant onboarding is the sizzle, not the steak. While digitized and fast merchant onboarding looks great, small businesses need to understand the fee schedule and the complete range of solutions and apps that directly apply to their specific operational needs and future growth,” commented Raymond Pucci, Director, Merchant Services, at Mercator Advisory Group, and author of this report.

Highlights of this research report include:

  • How Square pioneered an affordable, rapid acceptance service that appealed to a previously underserved market
  • How First Data (now Fiserv) acquired Clover to create a competitor to Square with the reach and financial capabilities of the #1 merchant acquirer
  • The introduction of the web-connected mobile point-of-sale market, combining a range of hardware solutions with a marketplace or app store approach, integrating a wide variety of apps
  • How marketplaces add to profitability by creating sources of revenue beyond commodity transaction fees
  • The restaurant sector as a key opportunity for web-enabled point-of-sale terminals

This report is 16 pages long and has 5 exhibits.

Companies mentioned in this report: Android, Apple, Apptizer, Bank of America Merchant Services, Celtic Bank of Utah, Clover, DoorDash, First Data, Fiserv, Intuit, PayPal, Poynt, Sam’s Club, Square, and Walmart.

Members of Mercator Advisory Group’s Merchant Services continuous advisory practice have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

For more information and media inquiries, please call Mercator Advisory Group's main line: 1-781-419-1700, send email to media@mercatoradvisorygroup.com.

For free industry news, opinions, research, company information and more visit us at http://www.PaymentsJournal.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
@MercatorAdvisor
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