The latest insights, observations, and opinions on the global softline luxury retail sector based on crowdsourced insights with industry experts.
Payment Processors - Channel Intelligence Report - 14 June 2021
The latest insights, observations, and opinions on the global payment processor industry based on crowdsourced insights with industry experts.
Transaction Volumes Increase 12% YOY in Q2-2021; 31% of Merchants Recently Added a New PSP; 48% Observe Increased Supplier Innovation Levels; Technology Focussed PSPs Look Poised to Gain Market Share; Payment Specialists Hold Optimistic 6-month Trading Outlook
Total Transaction Volumes Increase 12% YOY in Q2-2021
- Across the sources we interviewed over the last 90 days, on average merchants were reporting a 12% increase in their transaction volumes. Most of the merchants that had seen a significant increase in transaction volumes pointed to the growth of e-commerce as the core reason behind their increasing volumes as well as internal company growth. Checkout.com and Stripe were the individual PSPs that had seen the highest levels of volumes growth.
Average Transaction Values Remain Broadly Unchanged YOY
- Across the sources we interviewed in Q2-2021, transaction values were largely unchanged, marginally down by -1.5% on average compared to the same time last year with the travel industry seeing the largest drop off. Nuvei reported the highest level of growth in the average transaction value, up 5% compared to the same time last year due to their presence in the gambling industry.
31% of Merchants Recently Added a New Payment Processor
- Almost one third of Payment Specialists had recently added a new PSP over the last 6 months. In most cases, merchants were adding local payment processors in emerging markets, such as Latin America and APAC in order to accept local payment schemes in these countries. Stripe was the most commonly added global PSP with 4 merchants in various regions adding Stripe as a core payment processor for markets such as the US, Mexico and Europe.
48% of Payment Specialist Observe Increase in Innovation Levels
- 21 out of 44 merchants said they had seen an increase in innovation levels from their PSPs over the last year. Specifically, Checkout.com, Fiserv and Stripe were named as innovation leaders among the individual PSPs due to their modern platforms, and with Fiserv the launch of Clover for SMEs. Adyen and PayPal also beat the average with 63% and 50% of merchants reporting higher levels of innovation, respectively.
Card Payment Share Comes with High Regional Volatility
- The credit and debit card payment share across the last 90 days was 62% on average, but with high volatility between regions. The most card reliant markets included the United Kingdom, the United States of America and Canada, with most mainland European countries hosting a popular local payment scheme. Unsurprisingly, a number of merchants were looking to add more local payment scheme options to meet these regional demands.
Technology Focussed PSPs Poised to Gain Market Share
- 64% of Payments Specialists reported that they expected their PSP to increase in YOY market share. Merchants using Checkout.com, Stripe and Adyen all suggested they would continue to gain market share due to their modern platforms, agility and regional capabilities. Interestingly, these are the 3 PSPs known for having the best technology stacks among the larger payment processors. Merchants also unanimously expect PayPal to gain market share as a payment scheme on a global scale with increasing customer demand in a number of countries.
Payment Specialists Hold Optimistic 6-month Trading Outlook
- 81% of merchants were optimistic about the next 6-months, expecting transaction volumes to increase. Respondents suggested that with national lockdowns easing, Point-of-Sale transactions could see a bounce back and industries such as travel could rebound. Furthermore, a number of merchants were expanding into new regions with plans to grow over the next 3 to 6 months, which they expect will bolster their transaction volumes.
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