Acquiring Industry Enters a New Phase of Structural Change

According to Boston Consulting Group’s Global Payments Report 2025, the merchant acquiring industry is moving from steady growth to a period of structural transformation. For decades, acquirers thrived on transaction volume and predictable fee income. Now, that model is under pressure. Global payments revenue growth is expected to slow from nearly 9 percent annually to about 4 percent over the next five years.  Acquirers will face intensifying margin compression and competition from FinTech’s and embedded-finance platforms.

The report projects that transaction-related revenues, such as card acceptance, instant payments, and new digital ecosystems, will remain the strongest contributors, growing roughly 6 percent annually. However, acquirers that rely solely on processing volume risk stagnation. Growth will increasingly depend on delivering value-added services such as advanced fraud prevention, data analytics, merchant insights, and integrated payout solutions.

In this new phase, success will hinge on innovation, diversification, and collaboration. Acquirers must evolve from processors to strategic partners, while helping merchants navigate an expanding universe of digital wallets, instant-payment rails, and cross-border commerce. Those who can marry compliance discipline with agility and data-driven intelligence will define the next generation of acquiring. The age of “more swipes” is ending; the era of “smarter payments” has begun.

Acquirers will need to pivot from purely “processing” to “platform + value-added services (fraud, data, embedded payments)” if they want to maintain margins.  We have a lot to consider in this past moving industry and economy.