Standard Merchant Services
The face of business is continually changing and adapting to new technology. One of these changes is merchant services. It is a broad term, but most commonly used to describe services that allows the use of credit or debit card transactions. It can, however, encompass a number of other financial services such as Point of Sale (POS) systems, gift cards and reward schemes and online transactions to name a few. Generally speaking, it can be used to describe the behind-the-scenes processes that a business uses to accept payments. As you can imaging, these features can enhance the technological profile of a business and it’s profits, increasing the ways that a business can accept money for services. The use of merchant services is generally on the rise as a number of the innovative products are proving to change the face of business. Let’s have a look at some interesting statistics involving merchant services.
The important points:
- 1 billion people are predicted to use a mobile payment application in 2020.
- The e-commerce market value in the UK is worth around EUR180 billion, about a third of the European total.
- The global POS market at the end of 2018 was $62.34, with predicted growth year upon year of 7.8% thereafter.
- The value of card payment transactions in the UK is anticipated to reach almost £1 trillion by 2026.
- The number of UK retailers accepting card transactions now exceeds 1 million with 1.3 million outlets being the market share.
- The range and availability of merchant services is continually on the rise with demand for efficiency in shopping.
The rise of merchant services
There have been a number of innovations in the way in which people shop or pay for products, that have revolutionised the market. Fewer people carry cash than at any point whereas we now have card payments, contactless payments, online transactions, e-vouchers, third party payments amongst many, many others that are not only prevalent but increasingly preferred to traditional methods of paying for things.
Along with this rise and obvious desire from people for greater efficiency and ease in their payment needs, there are continually new technologies being produced for a wider choice in how people want to pay. The mobile market has perhaps grown faster than any other in recent years. One of the highlighted statistics earlier was that 1 billion people are predicted to us an app. that accepts payment in 2020. Coupled with this, previously uncultivated markets such as India are now rapidly adapting to these technologies. The digital payments market in India is anticipated to go from $200 billion where it is currently to $1 trillion by as early as 2023.
The merchant services market as a whole isn’t going anywhere. Because of the easy and friendly way that it allows you to make payments, it is quickly establishing itself as the global choice for the future. Within this, the mobile payments market has risen meteorically over the last 10 or so years. It is clear that people would prefer to make payments from the comfort of their own phone than in store or even using a laptop or desktop computer. As these trends see no sign of ending, look for the market share of merchant services to only increase and dominate the market in the coming years, if it isn’t already.