This report by Mastercard addresses the evolving needs of micro, small, and medium enterprises (MSMEs) in the digital landscape, focusing on optimising merchant onboarding processes to enhance payment acceptance experiences.
Key Insights
- MSME Digital Transformation: MSMEs are rapidly transitioning to digital platforms, driven by the necessity of modern commerce and influenced by consumer digital maturity. This shift necessitates a seamless digital onboarding experience for payment solutions.
- Current Onboarding Challenges: Traditional acquirers often employ outdated, manual onboarding processes that can take days and involve significant paperwork, leading to high merchant attrition rates and dissatisfaction.
- PayFacs’ Innovative Approach: Payment facilitators (PayFacs) like PayPal and Stripe have revolutionised the field by offering instant, digital onboarding experiences, reducing the time to onboard merchants to minutes through automated processes.
Strategic Recommendations
- Enhancing Digital Onboarding: Traditional acquirers should adopt more efficient, automated onboarding processes that align with the rapid digital expectations of modern MSMEs. This includes reducing manual inputs, leveraging advanced analytics for risk assessments, and ensuring compliance with regulatory standards.
- Customer-Centric Approaches: Acquirers must focus on customer-centric strategies, tailoring their services to meet the specific needs of MSMEs, which differ significantly from larger enterprises.
