Global Payments 2024 Overview

A type of software provider that specializes in developing and delivering technology solutions tailored for specific industries or business functions.

Financial institutions like banks are adopting various strategies to cater to the needs of small and medium-sized enterprises (SMEs) in the financial sector.

Banks that provide merchant services, often choose to partner with existing software providers, like Fiserv, for their merchant-acquiring services.

Digital native merchants like Airbnb or Netflix are rapidly growing and capturing a significant share of online commerce.

Digital native merchants are increasingly favoring modern payment providers like Adyen and Stripe.

Traditional acquirers are transitioning to a more basic role, primarily providing payment processing services.

Many ISVs prioritize growth over profitability, but in the future, they are expected to expand their services and focus on profitability.

Transaction banking, which involves managing various financial transactions, is becoming a key revenue source for financial institutions.

A system for verifying the accuracy of International Bank Account Numbers (IBANs) to prevent errors in cross-border payments.

Payments made between countries, often involving different currencies and banking systems.

Companies specializing in technology-driven financial services, often disrupting traditional banking. Examples include Wise and Airwallex.

The increasing use of digital tools and processes in the financial sector, transforming how businesses manage their finances.

A standard for financial industry messaging, allowing for automated reconciliation of transactions and improved data sharing.

An international organization that sets standards for various industries, including finance. Their ISO 20022 standard is influential in the financial world.

The management of accounts receivable (money owed to a company) and accounts payable (money a company owes to others).

The role of the Chief Financial Officer, who is responsible for a company's financial health, including treasury management.

Small- and medium-sized businesses (SMBs) are increasingly choosing integrated software solutions, combining payment processing and other functionalities, as they're often lacking the resources and expertise to manage complex technology stacks.

Vertical-specific software solutions, designed for particular industries like retail, e-commerce, or restaurants, have gained significant traction, capturing over half of total SME software spending in the US by 2023.

Traditional payment processors, often with older systems, are losing market share and profitability due to competition from newer, more agile disruptors offering integrated solutions.

As online shopping continues to grow, a significant portion of consumer-to-business (C2B) point-of-sale spending is shifting towards online platforms and marketplaces, like Amazon, eBay, and Shopify.

By 2023, platforms and marketplaces accounted for a substantial part of both online and in-person C2B sales, demonstrating their significant influence across the retail landscape.

The increasing prevalence of online platforms and marketplaces is leading to consolidation in the retail landscape, with more transactions happening through these centralized hubs.

Platforms and marketplaces, particularly those like Amazon and Shopify, are taking a significant share of online C2B transactions, leaving a smaller share for independent online sellers.

While platforms are growing rapidly online, in-person transactions are still largely dominated by traditional payment processors like Clover, Square, and Toast. These platforms have minimal impact on the physical retail sector.

Total C2B point-of-sale spending in the US has risen steadily from 2018 to 2023, highlighting the growth of both online and in-person commerce.

Both small and medium-sized businesses (SMBs) and larger enterprises have seen a significant increase in C2B spending from 2018 to 2023, indicating a broad trend of growth across different business sizes.