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UK Merchant Acquiring Report2019-2020June 2020For questions and enquiries, please contact: Michael Le Lion, mlelion@rfigroup.com
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UK MERCHANT ACQUIRING REPORT 2020Agenda1. Methodology2. Impact of Covid-19 on UK businesses3. Overview of the customer journey and understanding customer choice4. Conclusions4www.rfigroup.comCopyright Retail Finance Intelligence Pty LimitedCommercial in Confidence
UK MERCHANT ACQUIRING REPORT 2020Methodology The data in this report is sourced from the H2 2019 and H1 2020 UK Merchant Acquiring Council studies. The survey was in field in November/ December 2019 and April/May 2020. In total, over 1,000 UK merchants were interviewed online in each of the studies. All merchants acceptcard payments via merchant facilities and services provided by a merchant acquirer. Basic quotas were applied to the sample to ensure that the data is representative of the UK merchantpopulation by annual revenues, industry and region. Results have been weighted by annual revenuesusing the ONS data and data from the UK Commercial and SME Banking Council surveys.5www.rfigroup.comCopyright Retail Finance Intelligence Pty LimitedCommercial in Confidence
UK MERCHANT ACQUIRING REPORT 2020Sales show the biggest change in sentiment, andsubsequently presents the largest operationalchallenge for businessesPlease indicate whether the business expects these challenges to worsen or improve over the next 12 months.Trend – Net sentiment (% Improve - % %-4%-4%-7%-12%-13%-20%Currencyfluctuations and FXriskSalesImpact ofManagement of Access to fundingregulatory and margins and profitslegislative changeManagement ofcash flowEmployeerecruitmentRental costSource: RFi Group Research conducted in 2018 - 20206www.rfigroup.comCopyright Retail Finance Intelligence Pty LimitedCommercial in Confidence
UK MERCHANT ACQUIRING REPORT 2020Market overviewProportion of businesses that accept cardpayments18H118H219H119H220H158%60%63%What proportion of businesses sell goods/ services E-commerce or F2F?E-commerce onlyE-commerce & F2FF2F only34%53%13%40%87%66%20%All E-commerce presence0%Less than 1 year1 year to less than 3 years3 years to less than 5 years5 years to less than 10 years10 years to less than 20 years20 years or more15%33%29%14%6%1%Businesses have an acquiringrelationship with theirmerchant acquirer for 4.1years on average.12%All F2F presence% that use differentproviders for ECommerce & F2F7%41%% that use the sameprovider to acceptboth E-commerce &F2F47%6%2%7%13%Merchants that onlysell via E-commerce orF2F5%6%9%7%6%19%13%Source: RFi Group Research conducted in 2018 - 20207www.rfigroup.comCopyright Retail Finance Intelligence Pty LimitedCommercial in Confidence
UK MERCHANT ACQUIRING REPORT 2020Merchants primarily go directly to websites,followed closely by recommendation, and word ofmouth reputation.E-commerceUp to 250kHow did the business discover and research the provider(s) it chose for merchantacquiring services?Top 5, by revenueUp to 250k 250k - 1mDirectly via theirwebsite33%31%27%23%They wererecommended to meHeard by word ofmouthF2F 250k - 1m34%25%26%22%22%19%18%19%16%17%The business did itsown research online20%21%They wererecommended by abank the business usesThey were promotedon social media17%20%14%20%We reached out tothem directly over thephoneSource: RFi Group Research conducted in H2 20198www.rfigroup.comCopyright Retail Finance Intelligence Pty LimitedCommercial in Confidence
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card payments via merchant facilities and services provided by a merchant acquirer. Basic quotas were applied to the sample to ensure that the data is representative of the UK merchant . - This presentation has been prepared by Retail Finance Intelligence Pty Limited ACN 121 015 192 and its associated entities worldwide
