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Data &. Services

Economic institute

In a world of choices, why limit yourself? Monoline vs acquirer agnostic gateways

4 min read · 2024


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Our modern age thrives on choices. Don’t want fries with your side? Choose something different. Don’t like the cable and internet package? Select your own. Unhappy with a computer system? Get one tailored just for you.



Why is it then when we’re given ample choice in all other aspects of our lives would we chose a payment provider that restricts that choice by determining which acquiring bank we can work with? Commonly called monoline services, this bundling occurs when merchants choose a payment gateway that only offers connectivity to one acquiring bank. Now while monoline services do have the benefit of a one-contact relationship model, there’s another single touch point solution that could also benefit your business.



In contrast to a monoline payment provider, an acquirer agnostic gateway, such as Mastercard Gateway, is not tied to one specific acquirer. Instead, our global gateway connects via a single integration to over 200 acquirers globally, relevant payment methods and advanced fraud protection technology to better meet merchant’s continuously evolving needs. Our gateway aims to provide a flexible and inclusive infrastructure that can support multiple payment options without being tied to any specific provider or technology.
As an acquirer agnostic gateway, we have a high level of interoperability, innovation and choice in the realm of payment processing, creating a more open and accessible environment for merchants and consumers alike.



A recent report from Edgar and Dunn revealed that 57% of merchants globally are currently engaging with multiple acquirers and among the merchants who currently use a single acquirer, 40% aim to switch to multiple acquirers in the next 12 months.

 

 

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What is a multi-acquirer payment gateway?‎

 

A multi-acquirer payment gateway empowers merchants to connect to multiple acquiring banks across the globe. By serving as a central gateway to various acquiring banks worldwide, merchants can streamline their operations by having a one-to-many approach. This can be helpful for merchants especially as their businesses grow into new countries. Mastercard Gateway is a multi-acquirer payment gateway and connects to over 200 acquirers.

What is a single acquirer payment gateway?‎

 

A single acquirer payment gateway is also known as a monoline service. In this traditional relationship, merchants connect to the gateway and their mandated acquirer. The gateway will process all transactions with their single acquiring partner. This monoline approach can work well for a business operating in smaller regions.

Making the right choice


 

This shift towards engaging with multiple acquirers reflects a growing trend in the payment industry towards diversification and flexibility. By expanding their options, merchants are positioning themselves to adapt to changing market conditions and customer demands. When using an acquirer-agnostic gateway, a single integration can link a merchant to numerous top financial institutions, both locally and globally.



For international merchants, setting up integrations across multiple countries can be time-consuming. However, with a payment gateway that already links to these local acquirers, time to market can be significantly decreased. In addition to time savings, local acquiring connections often contribute to improved acceptance rates for merchants expanding into new markets, especially when accepting local payment methods.

This can be incredibly helpful especially in emerging digital countries. For instance, in addition to on-soil infrastructure in India, Mastercard Gateway also recently announced a new on-soil processing infrastructure, in line with the regulatory guidelines in the Kingdom of Saudi Arabia (KSA). This move demonstrates our commitment to supporting the rapid evolution of the payment industry. The investment will strengthen our ability to offer localized solutions to meet regional needs, deliver operational enhancements and ensure customers can scale their business and manage regulatory requirements more easily.

Moreover, the flexibility provided by brand agnostic gateways empowers merchants to adapt to changing market dynamics quickly. They can easily explore new markets and seize growth opportunities with the assurance that their payment processing needs are efficiently met.

This seamless integration to various financial institutions ensures a seamless and secure transaction experience for both businesses and their customers, fostering trust and loyalty in an increasingly competitive business landscape.

This streamlining of the payment process not only saves merchant’s valuable time but also allows them to focus on their core business activities rather than navigating complex integrations. By leveraging an acquirer-agnostic gateway, businesses can effortlessly scale their operations and cater to a diverse range of customers without the burden of managing multiple payment connections.

 

In today's competitive market, having access to gateways that enable seamless connections to various acquirers is invaluable for merchants. By being able to extend your relationship to multiple acquirers, merchants gain a significant advantage in finding a tailored solution fit for their goals.



By embracing multi-acquirer enabled gateways and their capabilities, merchants can navigate the complexities of the payment landscape with confidence and efficiency. These gateway providers enable businesses to optimize their payment processes, enhance their customer experience, and ultimately drive growth and innovation in the ever-evolving world of commerce.



As the landscape of payments continues to evolve, the ability to seamlessly navigate and leverage multiple acquirers will be a key differentiator for businesses looking to stay competitive and meet the needs of their customers. Embracing this shift towards multi-acquirer strategies can pave the way for a more resilient, agile and successful future in the dynamic realm of payments.

Kristen Bruhn

Commercialization Manager, Merchant Cloud, North America

Kristen Bruhn