BI Intelligence
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US-based payment processor Vantiv has announced that it has agreed to acquire Moneris USA, the US subsidiary of Toronto-based payment processor Moneris Solutions Corp., for $425 million.
Moneris USA provides high-quality merchant service solutions, including credit, debit, wireless, and digital payment services for merchants in nearly all industry segments. Vantiv will serve Moneris USA's merchant partners with “deep payments expertise” on its way to growing the company.
Vantiv is poised to expand its portfolio and bolster sales with this acquisition.
- The acquisition significantly adds to Vantiv's US portfolio. Vantiv will take over serving Moneris USA’s 350,000 merchant locations, which process over 3 billion card transactions per year. Vantiv is already considered the nation's second-largest payment processor, with over 800,000 merchant locations. This deal will likely strengthen the firm's positioning in the US and help it increase its market share.
- The needs of Moneris USA's merchant clients could set Vantiv up for sustained growth. Vantiv has historically listed its omnichannel capabilities as a driver of growth for this company, and has recently been investing in a number of features to better serve merchants and those that provide services to them in this area. It's likely that Moneris USA merchants will be attracted to Vantiv's omnichannel offerings because they're already selling online. That's especially true in light of omnichannel growth across the board — 89% of merchants have a website and 65% have a mobile store, compared with 76% and 25% five years ago, respectively. Acquiring new business that's likely to be interested in a key growth driver could be a recipe for success for Vantiv as it continues to scale.
Vantiv's acquisition of Moneris USA could shift part of the payments ecosystem, which now includes acquirers, processors, merchants, networks, and more.
Evan Bakker and John Heggestuen, senior research analysts at BI Intelligence, have compiled a detailed report on the payments ecosystem that drills into the industry to explain how a broad range of transactions are processed, including prepaid and store cards, as well as revealing which types of companies are in the best and worst position to capitalize on the latest industry trends.
Here are some key takeaways from the report:
- 2016 will be a watershed year for the payments industry. Payments companies are improving security, expanding their mobile offerings, and building commerce capabilities that will give consumers a more compelling reason to make purchases using digital devices.
- Payments is an extremely complex industry. To understand the next big digital opportunity lies, it's critical to understand how the traditional credit- and debit-processing chain works and what roles acquirers, processors, issuing banks, card networks, independent sales organizations, gateways, and software and hardware providers play.
- Alternative technologies could disrupt the processing ecosystem. Devices ranging from refrigerators to smartwatches now feature payment capabilities, which will spur changes in consumer payment behaviors. Likewise, blockchain technology, the protocol that underlies Bitcoin, could one day change how consumer card payments are verified.
In full, the report:
- Uncovers the key themes and trends affecting the payments industry in 2016 and beyond.
- Gives a detailed description of the stakeholders involved in a payment transaction, along with hardware and software providers.
- Offers diagrams and infographics explaining how card transactions are processed and which players are involved in each step.
- Provides charts on our latest forecasts, key company growth, survey results, and more.
- Analyzes the alternative technologies, including blockchain, which could further disrupt the ecosystem.
To get your copy of this invaluable guide, choose one of these options:
- Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
- Purchase the report and download it immediately from our research store. >> BUY THE REPORT
The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the payments ecosystem.
