In a new report, BPC explain the market dynamics that are leading to wholesale changes in acquiring.
Next-generation acquiring
From regulation and a huge increase in merchants accepting electronic payments through to the growing diversity of consumer payment options available, BPC outline why the acquiring segment is going to have to change dramatically to adapt and survive.
In an earlier post, we outline the trends covered by BPC’s report, and some of the specific challenges acquirers face.
These include managing a massive increase in electronic transaction volumes – projected to hit 4 trillion annually by 2030[1] – delivering new products to merchants at much lower cost, and coping with the impact of new payment types and new fraud vectors.
New Capabilities Across the Board
The new study from BPC explains why successful acquiring systems will need a completely new set of capabilities to cope with these changes before 2030.
These include switching to cloud-ready platforms with open-source architectures that can handle huge increases in transaction volumes over the next five years, plus the capacity to accept multiple wallet and payment types, from QR-code payments through to instant A2A transactions.
BPC set out why next-generation acquiring systems will also need to be flexible enough to comply with new regulations and anti-fraud measures, whether that’s ensuring compliance with the EU’s third Payment Services Directive (PSD3, due in 2027/28) or new fraud ID and prevention techniques that detect and prevent ATO, synthetic ID and APP fraud.
Integrating a new system will also have to be easy – whether that’s to incorporate today’s fraud solutions such as 3DS, or new fraud management modules to be developed in the years ahead.
Optimal Value, Maximum Service
The capacity to manage different parts of the payments process such as processing and communication between banks, otherwise known as payments orchestration, will grow in importance over the next five years as merchants seek optimal value from acquirers through a full end-to-end solution that delivers rich transaction data based on the ISO 20022 messaging standard.
BPC’s new report claims this will enable merchants to exploit that data to manage inventory, develop new products and improve the customer experience.
Most importantly, the report explains why tomorrow’s acquiring systems will need to demonstrate a low ongoing cost of ownership for acquiring companies as they come under pressure to deliver more features for less revenue.
To help maintain and build revenue, systems must also enable acquirers to introduce new features rapidly and with minimum friction.
BPC is a leading provider of cloud-ready, modern acquiring solutions tailored to meet the needs of merchants in markets around the world.
To find out more about why and how tomorrow’s acquiring systems will need to deliver a step-change in capacity and performance, download your free copy of their new report now.
[1] PwC: “Payments in 2025”
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