Based on our extensive M & A advisory, consulting and market expertise, here is a summary of MAPP Advisor’s Top 5 Payment Trends of 2017.
1. Consolidation in the Payments Market
We continue to see consolidation in the payments market. The consolidation is driven by technology and is a means for companies to sustain market valuations and gain a competitive edge. Companies focused on niche verticals or technologies have the greatest advantage.
2. Integrated Payments
Integrated payments offer many advantages including saving money, automating processes, increasing accuracy and reducing attrition. This trend is driven by merchants’ demand that payments be incorporated into into their software systems.
3. Payment Facilitation
Payment facilitation reduces the time and costs associated with boarding merchants. Companies can collapse the time it takes to become a payment facilitator and reduce the risks associated with becoming one by working with a company like MAPP Advisors.
4. High Portfolio Valuations
Portfolio valuations are at all time highs. This trend is being driven by plentiful financing, integrated payments, ISVs, niche opportunities and the desire to reduce transaction costs. It is a seller’s market though buyers are focused on specific types of assets such as integrated payments, verticals and payment facilitators.
5. Emphasis on Underwriting
As companies look to reduce risk, greater emphasis has been placed on underwriting. Just as EMV cards have reduced fraud, updated underwriting processes and policies have reduced risk. Policies must be formulated to address many variables including merchant type and card acceptance method.
We expect these trends to continue into early 2018. If you would like to capitalize on any of these opportunities, contact us to find out how our expertise with these trends can benefit your business. MAPP Advisors is a payments industry leader in M & A advisory, portfolio management, and risk & compliance management. We tailor our services to the specific needs of our clients and add value to their assets.
Please contact us at [email protected] or 615-656-0315 for a complimentary consultation.