UK Merchant Acquiring Report - RFi Group
Transcript of UK Merchant Acquiring Report - RFi Group
UK Merchant Acquiring Report2019-2020
For questions and enquiries, please contact:• Michael Le Lion, [email protected]
June 2020
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I N T R O D U C T I O N T O R F i G R O U P
Global intelligence + local Insight = Informed decisions
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Our blue-chip client base…I N T R O D U C T I O N T O R F i G R O U P
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Agenda
1. Methodology
2. Impact of Covid-19 on UK businesses
3. Overview of the customer journey and understanding customer choice
4. Conclusions
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Methodology
• The data in this report is sourced from the H2 2019 and H1 2020 UK Merchant Acquiring Council studies.
• The survey was in field in November/ December 2019 and April/May 2020.
• In total, over 1,000 UK merchants were interviewed online in each of the studies. All merchants accept
card payments via merchant facilities and services provided by a merchant acquirer.
• Basic quotas were applied to the sample to ensure that the data is representative of the UK merchant
population by annual revenues, industry and region. Results have been weighted by annual revenues
using the ONS data and data from the UK Commercial and SME Banking Council surveys.
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Source: RFi Group Research conducted in 2018 - 2020
Sales show the biggest change in sentiment, and subsequently presents the largest operational challenge for businesses
-8%
21%
-7%
11% 10%12%
7%
1%
-8%
15%
-2%
7%
3%
13%
1%
-4%-6%
16%
-8%
5%
14%
9% 8%
0%1%
29%
3%
17%15%
19%
12%
4%
-13% -12%
-9% -9%-7%
-4%
0%
0%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
Currency
fluctuations and FX
risk
Sales Impact of
regulatory and
legislative change
Management of
margins and profits
Access to funding Management of
cash flow
Employee
recruitment
Rental cost
Please indicate whether the business expects these challenges to worsen or improve over the next 12 months.Trend – Net sentiment (% Improve - % Worsen)
18H1 18H2 19H1 19H2 20H1
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Source: RFi Group Research conducted in 2018 - 2020
Market overview
58%63%
0%
20%
40%
60%
Proportion of businesses that accept card
payments
18H1 18H2 19H1 19H2 20H134% 13%53%
87% 66%
What proportion of businesses sell goods/ services E-commerce or F2F?
All E-commerce presence All F2F presence
E-commerce only E-commerce & F2F F2F only
13%
7%
6%
7%
7%6% 6%
19%13%9%
5%
2%
Less than 1 year 15%
1 year to less than 3 years 33%
3 years to less than 5 years 29%
5 years to less than 10 years 14%
10 years to less than 20 years 6%
20 years or more 1%
Businesses have an acquiring relationship with their
merchant acquirer for 4.1 years on average.
47%
41%
12% % that use different
providers for E-
Commerce & F2F
% that use the same
provider to accept
both E-commerce &
F2F
Merchants that only
sell via E-commerce or
F2F
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How did the business discover and research the provider(s) it chose for merchant acquiring services?Top 5, by revenueUp to 250k £250k - £1m
33% 27%
31% 23%
20% 21%
17% 20%
14% 20%
Directly via their website
They were recommended to me
Heard by word of mouth
The business did its own research online
They were recommended by a bank the business uses
They were promoted on social media
We reached out to them directly over the phone
Source: RFi Group Research conducted in H2 2019
Merchants primarily go directly to websites, followed closely by recommendation, and word of mouth reputation.
Up to 250k £250k - £1m
34% 25%
26% 22%
22% 19%
18% 19%
16% 17%
E-commerce F2F
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