A Multiple-Acquirer Strategy Can Yield Improved Conversion Rates, Study Finds

Merchants that use multiple acquirers may benefit from more than just payment-acceptance resiliency. Some—85%—have seen an increase in their conversion rates, finds a study from Edgar Dunn & Co. commissioned by Naples, Fla.-based ACI Worldwide Inc.

In the study, which surveyed 93 merchants and 68 payment-service providers, 43% of the merchants said they experienced an increase of 1% to 5% in conversion rates, while 19% had an increase from 6% to 10% and 23% saw a greater than 10% increase.

While the conversion rate boost is welcome, it is not the mostly likely reason merchants use multiple acquirers. The top reason is resiliency, cited by 21%, followed by reducing operational costs, 18%, and then improving conversion rates, 14%.

“Improving resilience is a constant among the reasons why merchants across verticals choose to work with multiple acquirers. The rise of electronic forms of payment and e-commerce makes having backup acquirers more important in case of difficulties in processing a transaction, regardless of the vertical,” the report states. 

Generally, merchants that use multiple acquirers are pleased with the strategy, with 71% saying they are either satisfied or very satisfied doing so. 

The reasons payment-service providers use multiple acquirers mirror those of merchants. Twenty-four percent cite resiliency, followed by reducing operational costs for merchants, 21%, and improving conversion rates, 13%.

“At first glance, working with a single acquirer may offer an appealing simplicity. For the majority of merchants, however, this is clearly outweighed by the enhanced flexibility, control, and improved conversion that result from greater independence and the use of an acquirer-agnostic gateway that can support multiple acquirers,” the report concludes.