Insights from CMSPI's First Industry Report Unveiled
Today, CMSPI has launched its first-ever State of the Industry Report, a result of collaboration with the Insights Advisory Council (IAC) established in 2023. This Council comprises respected leaders from major global companies like Amazon, Best Buy, and Walmart. Their shared goal is to create a smoother payment experience that benefits both merchants and consumers.
Purpose of the State of the Industry Report
The State of the Industry Report is an essential resource for merchant leaders, payments professionals, and policymakers around the world. It aims to inform these stakeholders about the current state of payment acceptance.
Valuable Contributions from Industry Leaders
Elley Frost, CEO of CMSPI, expressed appreciation for the Council's participation, stating, "We greatly appreciate the Council’s engagement and collaboration in developing this significant industry research. We look forward to our continued partnership with the Council to highlight the foremost strategic payments considerations facing the world’s leading merchants and partners." This collaboration is designed to bring attention to key strategies that can help tackle challenges within the payments sector.
Key Takeaways from the Report
The report provides a merchant-focused perspective on payment acceptance, covering various elements such as costs, supply chain complexities, the surge in e-commerce, and shifts in global policies. It offers insights into how these factors are transforming the payments landscape.
The Complex Payments Infrastructure
Callum Godwin, CMSPI's Chief Economist, noted, “Behind card payments lies a complex web of infrastructure rules and practices that have shaped the payments industry.” By clarifying these components, the CMSPI Insights Advisory Council aims to empower stakeholders with the knowledge needed for better decision-making in a constantly changing environment.
Notable Statistics Highlighted
The report presents several important statistics that illustrate the trends and challenges encountered by U.S. merchants:
- In 2023, U.S. merchants faced $224 billion in costs related to card payment acceptance.
- Since 2009, these merchants have seen a rise in payment costs of about 34 basis points.
- U.S. merchants have experienced an estimated annual increase of $2.4 billion in interchange and network fees due to rising e-commerce spending and increased card fees since 2019.
- With over 300 global payment policy interventions, dual network debit card routing could save approximately $4 billion annually in the U.S. and $800 million in Australia.
About CMSPI
CMSPI is a leading payments consultancy dedicated to helping Global 500 merchants enhance their payment performance through strategic data utilization. The company combines specialized expertise with deep market insights to assist clients in achieving significant savings while boosting sales growth and developing effective payment strategies.
With primary offices in key markets, CMSPI is well-positioned to engage with clients and provide support across a wide array of payment challenges. For more information, visit our website.
Frequently Asked Questions
What is the purpose of the State of the Industry Report?
The report aims to educate merchant leaders and payments professionals about current trends and challenges in payment acceptance.
Who are the key contributors to the Insights Advisory Council?
The Council includes leaders from notable companies like Amazon, Best Buy, and Walmart, working together to optimize payments.
What significant trends does the report highlight?
It highlights the increase in card payment costs and the impact of e-commerce spending on interchange fees.
How can merchants benefit from the insights provided?
By leveraging the report's findings, merchants can implement strategies to reduce costs and enhance their payment processes.
Why is understanding the payments infrastructure important?
Understanding this infrastructure helps stakeholders navigate complexities and make informed decisions in the payments landscape.
