Small-Business Payment Disruptors

How Merchant Services Players Can Tap Into Changing Competitive Dynamics and Tech Innovation

Report by Jaime Toplin  | Apr 6, 2022
Download
Report
Share
Table of Contents
Executive Summary
Key Points
Introduction
The Shifting Opportunity in Small Business
The Competitive Landscape
How Providers Can Best Serve Small Businesses in the Current Climate
Insider Intelligence Interviews
Read Next
Sources
Media Gallery
About This Report
Increasing digitization among the 32 million US small businesses is changing the competitive landscape and forcing banks, acquirers, and fintechs to invest in next-generation features. These features range from payments and value-added services to outreach.
Topics
Financial Services
Payments
Digital Payments
United States
Table of Contents
Executive Summary
Key Points
Introduction
The Shifting Opportunity in Small Business
The Competitive Landscape
How Providers Can Best Serve Small Businesses in the Current Climate
Insider Intelligence Interviews
Read Next
Sources
Media Gallery

Executive Summary

The combination of increasing payment and operational digitization and rising merchant services satisfaction among small and medium-sized businesses (SMBs) is forcing banks, acquirers, and fintechs to evolve their offerings. To compete in the crowded market—and earn the volume and revenue opportunity this customer base presents—merchant services players will need to ramp up innovation across payments, value-added services, and outreach and marketing.

3 KEY QUESTIONS THIS REPORT WILL ANSWER

  1. How will merchant services providers be affected by changes in the SMB landscape?
  2. Which classes of providers are best positioned to succeed and meet the specific needs of SMB owners?
  3. What are key areas of innovation and best practices across payments, value-added services, and outreach?

WHAT’S IN THIS REPORT? Based on data and interviews with key industry figures, we evaluate the major groups of providers competing to serve small businesses, examine wholesale changes in the approach to SMB merchant services, identify specific areas of investment set to dictate innovation in 2022, and spotlight best practices for payment service providers (PSPs).

Importance of Financial Operations Technology Interoperability to US SMBs, Oct 2021 (% of respondents)
E-Mail ChartDownload

KEY STAT: Nearly 7 in 10 small businesses rank interoperability as “very” or “extremely” important, underscoring the benefits of an ecosystem-driven approach for merchant services providers competing for share of the market.

Here’s what’s in the full report

1file

Exportable files for easy reading, analysis and sharing.

11charts

Reliable data in simple displays for presentations and quick decision making.

8expert perspectives

Insights from industry and company leaders.

    Table of Contents

    1. Executive Summary
    2. Key Points
    3. Introduction
    4. The Shifting Opportunity in Small Business
    1. The Competitive Landscape
    2. How Providers Can Best Serve Small Businesses in the Current Climate
    3. Insider Intelligence Interviews
    4. Read Next
    1. Sources
    2. Media Gallery

    Charts in This Report

    Importance of Financial Operations Technology Interoperability to US SMBs, Oct 2021 (% of respondents)The US Small- and Medium-Sized Business Market, by Revenue Category (number of firms and billions, March 2020)
    US Small Businesses' Satisfaction with Their Merchant Services Providers, Feb 2022 (scale of 0-1,000*)Payment Priorities According to Digital Small Business* Decision-Makers Worldwide, Oct 2021 (% of respondents )
    Financial Services Trends Likely to Have a Positive Impact on US Small Businesses, Jan 2022 (% of respondents)US Retail Ecommerce Sales, 2020-2026 (billions, % change, and % total retail sales)
    NFC-Ready Mobile Point-of-Sale (mPOS) Terminal Shipments Worldwide, 2020 & 2025 (millions)Block Gross Profit Worldwide, by Segment, 2018-2021 (thousands)
    US Addressable Market for Merchant Acquirers, by Vertical, 2020 (billions)Financial Challenges Faced by US Small Businesses During the Past 12 Months*, Oct 2020 (% of respondents)
    Services for Which Digital Small Business* Decision-Makers Worldwide Would Pay a Premium, Dec 2021 (% of respondents )

    Interviewed for This Report

    Brad Brodigan
    JPMorgan Chase
    Managing Director and Global Head of SMB Payments
    Interviewed March 4, 2022
    Brian Dammeir
    Adyen
    President, North America
    Interviewed February 28, 2022
    Jeff Dickerson
    Fiserv
    Head of Clover Solutions
    Interviewed March 2, 2022
    Aparna Khurjekar
    Verizon
    President, Verizon Business Markets
    Interviewed March 7, 2022
    Saumil Mehta
    Square
    Head of Point-of-Sale
    Interviewed March 4, 2022
    Mark Monaco
    Bank of America
    Head of Enterprise Payments
    Interviewed March 3, 2022
    Kathryn Petralia
    Kabbage
    Co-founder
    Interviewed March 4, 2022
    Afshin Yazdian
    Paysafe
    CEO, US Acquiring
    Interviewed March 1, 2022

    Access All Charts and Data

    Gain access to reliable data presented in clear and intelligible displays for quick understanding and decision making on the most important topics related to your industry, included at no extra cost.
    Gain Access to EMARKETER →
    Log in to EMARKETER

    authors

    Jaime Toplin

    Contributors

    Tyler Brown
    Senior Analyst
    Daniel Decea
    Researcher, Financial Services
    Reuben Loewy
    Director, Report Editing
    David Morris
    Principal Analyst