Processing the Vertical Software and Payments Landscape in Europe

This report provides a detailed analysis of the integration of payment processing within vertical software markets in Europe. It outlines the evolution of payment processing, highlighting the roles of independent software vendors (ISVs), payment service providers (PSPs), and merchant acquirers. The report identifies three growth vectors driving this evolution: increasing digitization, growth in e-commerce penetration, and the democratization of software for small and medium-sized businesses (SMBs). It discusses how ISVs have embedded payment capabilities into their offerings and examines the competitive landscape, noting the disintermediation risks faced by traditional merchant acquirers. The report also screens ten verticals to identify notable ISVs in Europe, emphasizing the varying levels of payment enablement across different industries. The document concludes with a discussion on the strategic responses of merchant acquirers and PSPs to maintain their market positions amidst these changes.