Report: New Payments Companies Provide Opportunity, Not Threat
July 19, 2013
New entrants in the payments field create opportunity rather than forcing attrition, according to the results of a survey conducts by the Electronic Transactions Association (ETA) and Goldman Sachs Global Investment Research. The survey, which polled 77 merchant acquirers, ISOs and POS solutions providers, found 90 percent of respondents feel new industry entrants only account for 25 percent of industry attrition.
“The data and trends unveiled in this ETA-GS survey highlight growth opportunities in the industry,” said Jason Oxman, CEO of ETA. “Incumbent companies are increasingly choosing to partner with new entrants in the market. The ETA is focused on helping the electronic payments industry to grow business and provide innovative services to merchants and consumers.”
The survey also found 40 percent of legacy payment companies choose to partner with new entrants to mitigate risk and speed the introduction of innovative products. And, things are looking up for the second half of this year, according to respondents. Sixty percent expect payment volume growth to accelerate during the rest of 2013 and 38 percent predict it will remain stable.