Acquirers today face shrinking spreads, rising competition, and merchants demanding more flexible, smarter payment solutions. To stay ahead, acquirers must maximize every transaction opportunity and protect their revenue streams.
Here are four strategies to boost revenue and strengthen margins:
- Accept More Payment Methods
Offering a wide range of payment options, digital wallets, buy-now-pay-later, and local schemes, helps merchants reach more customers and reduce churn. This directly increases transaction volume and acquirer margins. Capturing demand for emerging payment types that few competitors support also creates exclusivity and new monetization opportunities. - Reduce Unnecessary Declines by Approving More Transactions
One of the fastest ways for acquirers to grow revenue is by approving more transactions. Every approved payment increases processing volume, drives higher fee income, and strengthens merchant satisfaction.
A major opportunity to boost approval rates is by addressing non-sufficient funds (NSF) declines. By partnering with Kipp, acquirers can enable their merchants to approve more NSF transactions in real time by connecting them directly with issuers. Merchants agree to participate in the risk by paying a small incentive to issuers for approving transactions that would typically be declined due to insufficient funds. Contact us to learn more about how you can benefit from Kipp’s solution. - Optimize Fraud Management
Fraud controls are critical to protect merchants and customers, but overly strict settings can cause real damage. Studies show that up to 15% of declined transactions are actually legitimate. Blocking good customers reduces approval rates, frustrates merchants, and erodes acquirer revenue. Acquirers that invest in smarter risk models, dynamic decisioning, and real-time fraud monitoring can minimize false positives while maintaining strong security.
- Expand to New Markets
Acquirers can help merchants reach new customers internationally by simplifying cross-border payments. This includes offering local payment methods beyond Visa and Mastercard, supporting multi-currency transactions, and securing local acquiring licenses. Enabling merchants to accept preferred local payment options, removes friction and drives more sales. By handling the complexity for merchants, acquirers expand their merchants’ reach, and grow their own revenue with every additional transaction processed.
The Bottom Line
Acquirers must stay ahead of the curve in payments innovation to stay profitable and competitive. Boosting approval rates, expanding payment options, optimizing fraud management, and supporting cross-border growth are essential strategies.
Kipp helps acquirers increase revenue by turning NSF declines into approved transactions. Merchants share the risk by offering issuers a small incentive, making approvals more likely and boosting overall transaction volume.
Contact our team to learn how Kipp can support your growth.
