In the global merchant payment processing industry, net revenue has been steadily growing and is projected to exceed $171 billion by 2030, indicating a large and lucrative opportunity for businesses and investors. However, the market is crowded with similar vendor positioning statements, making it difficult for enterprises to distinguish between industry leaders and laggards. In response to this challenge, S&P Global Market Intelligence’s 451 Research has developed the FAST framework to help payment technology buyers and market stakeholders better assess the merchant payment processor vendor landscape.
The FAST framework categorizes key capabilities and attributes into four main areas: Frictionless, Adaptable, Secure, and Tailored. These categories serve as a tool for evaluating vendors, understanding the depth and breadth of their offerings, and assessing their ability to drive positive business outcomes for merchant end-users. In the Frictionless category, key attributes include the availability of alternative payment methods, ease of integration, global connectivity, and insight generation tools that enable merchants to better understand their customers and optimize costs.
The Adaptable category focuses on a merchant payment processor’s ability to efficiently respond to changing market dynamics and customer needs. Key attributes in this area include uptime and scalability, optimizers that help drive revenue growth, a single platform architecture that supports performance and innovation, omnichannel capabilities that create a seamless payment experience across channels, and adjacent capabilities that offer additional value beyond core processing services.
In the Secure category, strong security measures are essential for merchant payment processors to build trust and differentiate themselves from competitors. Key attributes in this area include the use of dynamic network tokens and EMV’s 3-D Secure technology to lower acceptance costs and prevent fraud, robust fraud prevention capabilities, tools to minimize chargebacks, and data privacy and security measures that reduce compliance burdens.
In the Tailored category, merchant payment processors should offer flexible and customizable capabilities that align with the unique business requirements and priorities of their customers. Key attributes in this area include local expertise for merchants selling into specific geographies, vertical and business model expertise tailored to specific industry nuances, robust support services including advisory and implementation services, and a strong partner ecosystem that includes software providers, systems integrators, and hardware vendors.
By leveraging the FAST framework to evaluate merchant payment processors based on their capabilities in the areas of Frictionless, Adaptable, Secure, and Tailored, businesses and investors can make more informed decisions when selecting a vendor. This framework provides a comprehensive and structured approach to assessing the merchant payment processor landscape, enabling stakeholders to identify industry leaders and align their payment processing needs with vendors that can drive positive business outcomes.