ETA, Goldman Sachs Research Release Merchant Acquirer, ISO and ISV Survey at TRANSACT

Last week at TRANSACT, the world’s largest payments technology event, ETA and Goldman Sachs Global Investment Research, a leading provider of payments industry research, released the findings of the GS-ETA Merchant Acquirer, ISO and ISV Survey.

The survey, which asked 77 of the world’s leading merchant acquirers, ISOs and ISVs to evaluate nascent and impactful payments technology trends, found that 83 percent expect mobile payment methods to succeed, up from 73 percent last year. The survey also found that six in ten respondents expect transaction volume growth to accelerate in 2018; the rest expect stable growth.

Other key figures identified in the survey include:

• iPOS penetration expect to continue to rise steadily. The survey found that respondents expect 20 percent of their merchants to use some form of “integrated” point-of-sale device like a tablet-based register or smartphone-based card reader in 2018. That’s up two points over 2017, increasing from 2016-2017 year-over-year growth by 1.5 percentage points.
• Over half of respondents see smaller merchants (those with less than $500,000 in revenue) as their top growth opportunity. According to the report, the shape of the pricing curve has flattened for the smallest merchants (those with under $250,000 in revenue), likely due to simplified pricing structures.
• Respondents expect next-gen payment processors and large tech companies like Apple, Google and Amazon to gain share of e-commerce payments over time.
• ISO and merchant acquirer respondents were split on whether the best course of action is to partner with or acquire ISVs. Where 46 percent said they plan to grow their software-enabled channel through partnerships, 31 percent said that they plan to grow through acquisitions and 23 percent said they plan to develop software solutions internally.

ETA members, click here to access the full report.