Christian Löw, Partner, Financial Services - Payments at EY, shares his insights on the SME payment acceptance ecosystem.
SMEs represent an attractive customer segment with a growing revenue pool and relatively consistent needs. However, the competitive landscape remains highly competitive.
Between 2019 and 2024, the number of SME merchants has grown by 2.3%, with continued expansion expected. Christian explores the evolving needs of SMEs that acceptance providers must address at each stage of the selection process. He emphasizes that SME merchants' requirements differ significantly from those of large merchants, necessitating a tailored approach with standardized and user-friendly products.
Additionally, Christian highlights the numerous providers in the SME ecosystem, noting that SME merchants are increasingly interacting through software platforms. He concludes by emphasizing the significant opportunities for banks to collaborate with software providers, payment platforms, and embedded finance solutions to effectively meet the unique demands of SMEs.
