With the Covid-19 pandemic forcing merchants to beef up or add an e-commerce channel to service customers disinclined to enter a physical store, processors that have partnered with or acquired independent software vendors (ISVs) specializing in the online sales channel are well-positioned for growth, according to The Strawhecker Group.
Since the pandemic hit the United States earlier this year, many merchants have adjusted their business model to add, or sell exclusively through, online channels, even if they never have before, the Omaha, Neb.-based consultancy says in its annual report on the U.S. acquiring market, published in March. For example, hair salons have begun selling hair care products online and restaurants launched online ordering for delivery or curbside pickup.
To serve merchants with growing e-commerce needs, payment providers need to demonstrate a strong knowledge of e-commerce, strategies to support e-commerce growth, and payment applications geared to the online sales channel, the report says.
“In the current environment with the Covid-19 pandemic, merchants need to pivot to the online sales channels, and quickly,” Jared Drieling, senior director of consulting and market intelligence for The Strawhecker Group, told Digital Transactions News this week. “ISVs create the applications that allow them to open an e-commerce store quickly, so it makes them an attractive target for processors to either partner with or acquire.”