Analyzed the cost of merchant acceptance in Hong Kong for a global payment card issuer

Key benefits: Client received a very detailed breakdown of costs in a form that they then used for tactical planning purposes

Need

A global payment card company wanted to understand the true cost of acceptance for merchants in Hong Kong in order to compete more effectively.

Application: Strategic Planning

Geography: Hong Kong

Approach

Mapped out processing costs and margins of acquirers, analyzed issuer interchange rates and 'distribution' billings for each interchange category, and identified merchant fees and gross margins.

Methods: Secondary & primary research

Solution

Mapped out competitive dynamics through analysis of domestic, outbound, inbound, and total discount billing volumes by industry, submission type, and issuer. Pinpointed competitors' tactical efforts to target consumer and commercial customer segments, and prioritized key customer segments through merchant gross margins in eight merchant industry sectors.