Short-term revenue growth in payments and transaction banking is anticipated to be modest. However, with a stable recovery, revenues could experience substantial increases, driven by the move away from cash, the rise in e-commerce and digital transactions, and ongoing innovations.

To seize these opportunities, traditional players must navigate a challenging competitive environment, where unconventional entrants are vying with banks and payment service providers to become the preferred issuer, provider, processor, or partner for customers.

How We Support Our Clients in Payments and Transaction Banking

Our consulting teams offer specialized expertise to assist clients in navigating complex challenges in the payments and transaction banking sector.

• Mergers & Acquisitions and Integration: We support clients in executing successful M&A transactions and managing post-merger integrations by leveraging key value-creation strategies. This involves identifying optimal targets, setting integration priorities, maximizing cost and revenue synergies, and mitigating business risks. Clients benefit from reduced fees through pre-closing transition service agreements and expedited realization of significant cost and revenue efficiencies.
• Enhancing Acquirer Revenues: Our consultants help acquirers drive new growth by tackling merchants’ major commercial challenges. This includes enhancing sales force productivity, transforming the merchant experience digitally, optimizing sales force pricing strategies, and strengthening risk management practices. The results are increased revenue through improved pricing and retention, along with professionalized risk management frameworks.
• Digital Wallet Strategies: In response to evolving customer expectations and growing competition, we assist wholesale transaction banks in rethinking their business strategies and operating models. This includes improving and digitizing customer interactions, leveraging data for greater business value, and collaborating with ecosystem partners to enhance offerings and drive revenue. Outcomes often include cost reductions of 15% to 25%, boosts in sales productivity of 10% to 15%, and enhanced service quality, leading to faster client onboarding and reduced customer complaints.
• Collections Optimization: We work with clients to develop tailored collections strategies supported by data and analytics. Our approach involves rapid assessments, refined segmentation, advanced digital outreach, compelling offers, and effective retention strategies. This results in reductions of 3% to 10% in charge-offs and up to 10% in operational expenses related to collections and recoveries. Additionally, we guide banks in supporting their customers, particularly those impacted by recent economic challenges.