Web-hosting Companies: The Undervalued Partner in Merchant Acquiring

A new report from Aite Group sheds light onto the functionalities that merchants value in their web-hosting partners. Based on Aite Group interviews with 53 vendors that provide web-hosting services to merchants, the report reveals the extent to which merchants demand security, fraud prevention functionality, and integrated payments solutions, as well as how merchant acquirers can leverage web-hosting companies to win merchant business.

Web-hosting companies offer merchants a way to connect with their shoppers online, but not all of these companies provide payments integration – an absence of functionality that is acceptable for some targeted merchants. Offering robust tools for both fraud prevention and data security, however, can be a key competitive advantage. Merchant acquirers should explore opportunities to build or partner with web-hosting companies that specialise in data security and fraud prevention, and capitalise on merchants’ need to use the same vendor for these services.

“Shockingly, a majority of web-hosting companies see fraud prevention and data security as the same thing,” said Adil Moussa, senior analyst with Aite Group and co-author of this report. “This misconception perpetuates the threat of fraud for merchants that use these web-hosting companies. Merchant acquirers that can demonstrate strength in both areas and educate merchants on the distinctions and importance of each can differentiate themselves from the competition.”

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