Introducing the CMSPI State of the Industry Report
CMSPI has launched its first-ever State of the Industry Report, created in partnership with its Insights Advisory Council (IAC). This council is made up of influential business leaders from top retail companies, and the initiative aims to enhance the payment experience for both merchants and consumers.
Insights from Global Retail Leaders
Collaboration with Industry Giants
The Insights Advisory Council includes executives from prestigious companies such as Amazon, Best Buy, lululemon, and Walmart. These leaders are dedicated to improving the payment experience and aim to share valuable insights that could transform how consumers and retailers engage with payment systems.
Purpose of the Report
This report is an essential resource for merchant leaders, payments industry professionals, and policymakers around the globe. It seeks to inform stakeholders about critical issues related to payment acceptance, such as cost management, the evolving landscape of eCommerce, and the impact of global policy changes.
Key Highlights from the Report
Elley Frost, CEO of CMSPI, notes that this collaboration has produced significant industry research that will greatly benefit both merchants and their partners. The ongoing partnership with the Council aims to spotlight the strategic considerations crucial for today's leading retailers.
Understanding Payment Costs
The State of the Industry Report offers a merchant-focused perspective on payment acceptance costs and trends. For instance, U.S. merchants faced an astonishing $224 billion in card payment acceptance costs in a recent year. Additionally, they have experienced a rise in like-for-like payment costs by around 34 basis points since 2009.
Impact of E-commerce and Card Fees
The rapid expansion of eCommerce has led to an extra $2.4 billion in interchange and network fees that merchants have encountered in recent years. These trends highlight the necessity for strategic insights that can provide merchants with the tools needed to optimize their payment systems.
Procompetitive Initiatives
Beyond addressing costs, the report also sheds light on the effects of over 300 global payment policy interventions. Noteworthy initiatives, such as dual network debit card routing, have created opportunities for significant savings—estimated at $4 billion annually for U.S. merchants and around $800 million in Australia.
Understanding the Complex Payments Landscape
CMSPI Chief Economist Callum Godwin points out that the payments landscape is complex, shaped by various infrastructures and practices over time. The insights presented in the report aim to clarify these complexities, equipping stakeholders for the continuously changing global payments environment.
About CMSPI
CMSPI ranks among the leading payments consultancies globally, dedicated to assisting Global 500 merchants in utilizing data to improve their payment performance. Their expert team merges unmatched market insights with innovative strategies to help clients achieve significant savings and growth.
Global Presence
With its headquarters in Atlanta, Georgia, and a strong presence in Manchester, UK, and Sydney, Australia, CMSPI operates regional offices worldwide. Their mission is straightforward: to empower merchants with the tools and knowledge necessary to thrive in a competitive market.
Frequently Asked Questions
What is the CMSPI State of the Industry Report?
The CMSPI State of the Industry Report is a research document that provides insights into the payment industry, focusing on emerging trends and challenges faced by merchants.
Who contributes to the Insights Advisory Council?
The Council is made up of leaders from major companies like Amazon, Target, and McDonald's, who work together to improve the payment experience.
Why are payment costs significant for merchants?
Understanding payment costs helps merchants manage their expenses effectively, ensuring profitability in a highly competitive environment.
How can eCommerce affect payment dynamics?
The growth of eCommerce requires unique payment strategies due to increased transaction volumes and the associated fees.
What savings opportunities exist within payment systems?
Initiatives such as dual network debit card routing offer substantial savings for merchants by fostering competition and efficiency within payment processes.
