Merchant Payment Platforms Market Might Exceed $16 Billion by 2024
PALM BEACH, Florida, Nov. 5, 2019 /PRNewswire/ -- The various merchant and digital payment industry as a service market size is expected to grow from USD $5.7 billion in 2019 to USD $16.7 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 23.9% during the forecast period according to a report by MarketsAndMarkets. They also said that optimized customer/merchant experience with quick and secure payment methods are the major factors driving the growth of the payment as a service market. Payment services providers help consult, integrate, and support organizations across various verticals, to effectively deal with payment processing with various payment methods and thereby ensure security across the enterprise payment ecosystem. The report said: "The vendors offering these services are keeping their eyes on the ever-evolving payment industry landscape and are offering competent services to deal effectively with the resolution of next-generation API-enabled payment platform services. These services help reduce infrastructure costs, increase overall revenues, and improve performance." Active cannabis companies in the markets this week include: Surge Holdings, Inc. (OTCQB: SURG), Fiserv, Inc. (NASDAQ: FISV), PayPal Holdings, Inc. (NASDAQ: PYPL), Global Payments Inc. (NYSE: GPN), Square, Inc. (NYSE: SQ).
According to the report, the Mobile Payments Conference, in 2017, 1.5 billion people worldwide preferred online shopping, and predicted that during 2019, the number will grow to 2 billion digital buyers. The growing marketplace of online shopping is paving the way for enterprise merchants, as these shoppers need an easy and safe way to pay for their purchases. The report noted that: "Retailers are also adopting innovative technologies, such as cloud computing, big data analytics, digital stores, and social networks, to increase their visibility and presence in the market. They are realizing the benefits of contactless payments, which include reduced transaction time, increased revenue, improved operational efficiency, and minimized operating costs."
Surge Holdings, Inc. (OTCQB: SURG) BREAKING NEWS: Surge Holdings, developer of the SurgePays™ Network for convenience stores, bodegas and community markets that provide products to the underbanked, today provided an update on completing the asset purchase of the ECS Prepaid business, Electronic Check Services business and the Central States Legal Services business (collectively, "ECS").
Through its proprietary Fintech software platform, ECS is a leading provider of prepaid wireless load and top-ups, check cashing and wireless SIM activation to convenience stores and bodegas nationwide. Since 2008, ECS has grown to a network of over 9,800 retail locations and 160 independent sales organizations ("ISO") processing over 18,000 transactions per day. Surge will integrate the ECS software with its SurgePays™ Network in order to offer both wholesale products from third-party manufacturers, as well as Surge products, including the SurgePays™ Reloadable Debit Card, SurgePhone Wireless and SIM Starter Kits. The transaction is expected to be immediately accretive to earnings.
Brian Cox, Chairman and CEO of Surge Holdings, commented, "This transaction marks a major inflection point for Surge, by immediately adding over 9,800 new retail locations, $48.7 million in additional projected annualized revenue, and 160 ISO salespeople. The developers are already working to integrate software platforms to include the ability to cross market the SurgePays™ Reloadable Debit Card, SurgePhone Wireless and SIM Starter Kits, as well as layer on additional high demand and trending products through the SurgePays™ Network. ECS and their management team of Derron Winfrey and Mark Garner have been a leader in our sector for a long time. We are excited about working with them to scale up the business - not only by adding stores, but also increasing same store revenue."
Derron Winfrey, President of ECS, commented, "We are extremely excited about the integration with Surge and the opportunity to bring Surge's product offering to our network. Our business models are closely aligned and highly complementary. The significant and immediate synergies will allow us to scale much more rapidly, growing both the network and product offerings. ECS was built as a preferred partner to our ISO's and independent retailers, catering to mom and pop shop owners by bringing them a level of service typically only found in the big box space. Many people do not realize that independent store owners make up approximately 53% of the entire convenience store marketplace, so this is a significant, underserved addressable market. We believe the level of service and product offerings that come from combining the strengths of Surge and ECS are unmatched in the industry and we are aligning our organizations to bring this advanced technology and service offering to our retail and ISO partners." Read this and more news for Surge Holdings at: https://www.financialnewsmedia.com/news-surg/
Other recent developments in the merchant/mobile payment, tech industries:
The report concluded that: "Managed services are crucial, as they are directly related to enhancing customer experience; hence, companies cannot afford to compromise on these services, as they help them sustain their position in the market. It has become challenging for companies to focus on their core business processes and simultaneously support various other functions, which, in turn, increases the significance of managed services. These services offer the technical skills required to maintain and update API-based payment platforms. All pre- and post-deployment queries as well as customer demands are addressed with the help of managed services. Companies mainly outsource managed services to focus on their core business. The emergence of hosted payment solutions is expected to increase the demand for managed services in the payment as a service market. Managed services help merchants reduce infrastructure complexity and operational cost, and simultaneously provide a secure and global infrastructure."
Fiserv, Inc. (NASDAQ: FISV) Raddon®, a Fiserv company and provider of innovative research, insightful analysis and strategic guidance to financial institutions, has launched a new solution to help financial institutions better understand customers' and members' lifestyles and banking behaviors. Predictive Analytics from Raddon allows financial institutions to build deeper relationships with members and customers through sophisticated targeting and segmentation, which helps drive greater customer value, share of wallet and ROI.
"When we heard that Raddon would be bringing predictive marketing capabilities to its suite of solutions, we immediately jumped onboard," said Karen Church, CEO of ELGA Credit Union, the first institution to implement Predictive Analytics. "Consumers have a lot of options when it comes to financial service providers. If we can get in front of them to provide what they need, when they need it, that's a big part of how we earn a place as the primary financial institution in their lives."
PayPal Holdings, Inc. (NASDAQ: PYPL) and Synchrony (NYSE: SYF) recently announced an expansion and extension of their strategic consumer credit relationship. As part of their expanded partnership, Synchrony will become the exclusive issuer of a Venmo co-branded consumer credit card in the U.S., which is expected to launch in the second half of 2020. PayPal and Synchrony also announced an extension of their overall consumer credit program relationship.
"For 15 years, Synchrony has been a strategic partner in offering credit cards that enable greater purchasing power and rewards for PayPal consumers," said Dan Schulman, CEO, PayPal. "We are pleased to deepen our relationship with Synchrony to bring groundbreaking new credit experiences to the Venmo community through a desirable credit card and a seamless in-app experience."
Global Payments Inc. (NYSE: GPN) a leading worldwide provider of payment technology and software solutions, recently announced an agreement with Desjardins Group, the leading cooperative financial group in Canada, to acquire its existing merchant acquiring business and portfolio of approximately 40,000 merchants. As part of the transaction, Global Payments will enter into an exclusive 10-year marketing alliance agreement under which Desjardins will refer members to Global Payments for payment technology and acquiring solutions.
Desjardins Group is the sixth largest financial institution in Canada by deposits, with approximately 1,000 branches and over 7 million members and clients. Its merchant acquiring business is a leader in Quebec, providing payment solutions to businesses across a wide range of verticals.
Square, Inc. (NYSE: SQ) simPRO has announced a partnership with Square to provide fast and simple payment processing options to field service professionals. simPRO is a comprehensive software solution with features to simplify field service management for trade contracting businesses. The Square integration with simPRO will provide field service businesses with an innovative mobile payment solution to help them get paid on the spot. Now, simPRO users will have the ability to accept card payments at the time of service, receive funds as early as the next business day, and issue invoices from the field.
The intuitive functionality of Square's features helps businesses reduce paper work, administrative tasks, and billing errors.
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