At the 2018 PAYMENTSfn conference, the team from Fattmerchant presented on the topic of what a great payments partner looks like. This is important because payments stacks are inherently about partnering -- partnering with merchants, processors, gateways, or infrastructure platforms.
Fattmerchant is a SaaS-based payments processor that provides technology, services, and subscription support for omni-channel payments solutions. At PAYMENTSfn they took an enlightening look at key payments industry market data, specifically around what small and medium-sized business owners look for in payments solutions.
There are about 30 million small businesses in the United States, about 10,000 software companies that focus on payments, and hundreds of companies that focus on payments processing. Across these small businesses, on an annual basis, 25% switch to another payments processor. Consider how different that is versus retail banking. The attrition rate for payments processors is very high. The Fattmerchant team then looked into the reasons for the change. You can see that by asking what are small businesses looking for from a payments processor? 40% care most about price, 25% about reliability, and 15% focus on the customer service. That means that 80% of small businesses are looking for basic payments services. But a full 20% care deeply about features because they need to do something more than a cookie-cutter approach.
For developers and others looking for payments sophistication, what are people looking for in a good partner? The team from Fattmerchant outlined a number of key elements:
Exploring the market data for payment processors reveals how vital it is to support the business needs of the businesses you partner with. Are you a great partner to your developer community?