GlobalData
4 min read
The acquiring market in Europe and the wider world is undergoing a period of strategic rethinking. Traditional financial institutions are evaluating their role in the payments ecosystem, driven by the twin forces of technological disruption and evolving customer expectations. As someone who has worked closely with banks, payment service providers, and retail platforms across multiple regions, I’ve seen first-hand how priorities are shifting and how approaches to modernisation differ widely.
For many banks, payments are not the most profitable part of the business. Revenue often comes more from ancillary services like credit, FX, M&A advisory, or liquidity management. However, payments are a crucial touchpoint in the broader retail relationship. They’re the entry point through which banks build, sustain, and deepen client engagement. Losing that foothold, particularly to non-bank challengers, can lead to a cascade of missed opportunities in more lucrative business lines.
As a result, we’re now seeing two distinct strategies emerge. Some banks have opted to exit acquiring or reduce their role, choosing instead to partner with third-party providers who bring technical scale and modern interfaces. Others are recommitting to acquiring as a core service, but doing so requires significant modernisation of infrastructure.
One common misconception I encounter is that migrating to a modern platform is inherently a years-long, high-risk, multi-million-euro endeavour. For many banks, this perception creates inertia. They recognise the need to improve but feel constrained by the expected complexity of change.
The reality is that technology has advanced to the point where integration timelines and costs can be significantly reduced. I've seen implementations go live in as little as five weeks, including commercial onboarding and technical configuration. The key lies in clarity around the migration process: which components move, what remains, how risk is managed, and how internal teams are supported through the transition.
Modern acquiring is no longer just about processing transactions; it’s about delivering actionable data. Retailers today want transparency: real-time insight into settlement timelines, fees, reconciliation, fraud risks, etc. The ability to provide a unified view across e-commerce and in-store payments is no longer a nice-to-have; it's expected.
Many legacy systems, built in an era when data storage was expensive and analytical capabilities were basic, are simply not designed to meet these demands. By contrast, modern systems are built around a centralised data model, allowing for full multi-channel visibility. That shift is transformative, not just for the banks but also for their clients, who can use the insights to improve margins, detect fraud, and streamline operations.
