One sure-fire way for merchants to boost their revenue is to improve their current payment processing solutions. Merchants must know that payments, by their nature, are very much local. Every country has its own language, culture, and technology that will inevitably dictate how payments are processed.
Therefore, a key strategy to maximize conversions and approvals, as well as tapping into new markets, is to have “local processing partners” established. One way to do this is to adopt a multiple-acquirer strategy. This way, merchants can still have global reach while benefiting from connecting with the local acquirers. Ultimately, this will drive up sales and increase the merchant’s bottom line.
What Is A Multiple-Acquirer Solution?
Having a multiple-acquirer solution essentially means building a solid network of acquirers so that, collectively, they can provide payment processing coverage worldwide. This diverse network is then merged into one single integration, forwarding all merchant transactions, regardless of location.
It is vitally important that a merchant chooses a payment provider that automatically connects the payment to the most suitable acquirer and one that is best equipped to handle that particular variety of transactions.
Multiple-Acquirer Strategy Boosts Conversion Rates
According to a study conducted by Edgar Dunn & Co., 85% have witnessed a boost in conversion rates. Of the 93 merchants surveyed, 43% mentioned an increase between 1% to 5% within their conversion rates. Nineteen percent of them experienced an increase from 6% to 10%, a greater than 10% increase was seen by 23%.
The top reasons why merchants have turned to using multiple-acquirers were resiliency at 21%, reduction in operation costs (21%), and enhancing conversion rates at 14%.
In the age of e-commerce and its subsequent increase in electronic payments, it is imperative to have backup acquirers in case there are issues with processing transactions.
Overall, merchants that do use multiple-acquirers have experienced positive results, with 71% reporting that they are either satisfied or very satisfied with it.
Adopting a multiple-acquirer solution means that transactions are more likely to be approved. Merchants are able to settle in the local currency at the “correct value”. Moreover, merchants can take advantage of lower processing fees. This is all possible due to using a payment processor that connects them with an acquirer that is local.
Merchants that have adopted this multiple-acquirer solution strategy have been mostly satisfied with this tactic, with 71% reporting that they were “satisfied” or “very satisfied” with it.
The report also found that 57% of merchants presently work with multiple acquirers. About 40% of the merchants surveyed said they currently used a single acquirer but hope to use multiple acquirers in the next 12 months.
The Answer Is Clear
Based on survey results, it was clear that merchants acknowledged the many benefits of working with multiple acquirers. Many mentioned an enhancement of acceptance rates as a plus as well as the ability to tap into a broader line of payment methods.