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Why Does a Multi-rail Payment Strategy Matter?

By Marc Sacal - Arcus Financial Intelligence


By Marc Sacal | COO - Thu, 05/12/2022 - 10:00

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Consumers want to choose what to pay, when to pay, and how to pay for their purchases. This presents a huge opportunity for merchants and has opened the door for players to implement a multi-rail payment ecosystem, where companies can build integrated payment solutions and consumers can choose between various payment methods. At Arcus, we are leading the market by providing our partners with a multi-rail payment network that includes cash, real-time payments through SPEI, and other payment rails. 

The global share of e-commerce as a percentage of total retail payments has increased from 10 percent to 21 percent in the last five years, and US$48 trillion in total payment volume (TPV) is expected to shift from cash to cards, interbank transfers, and new alternative payment instruments. Latin America and Mexico are no exceptions. Mexico is one of the fastest-growing e-commerce markets in the world with an expected CAGR of 16.8 percent in the next three years. Therefore, there is a massive opportunity for merchants to launch a multi-rail payments strategy and offer alternatives that provide consumers with the security and certainty they demand, regardless of the payment method. 

However, many merchants struggle to implement new payment solutions due to limited resources, reliance on third parties for services, and the required investment to compete and comply with local regulations. Additionally, in Latin America, cash is still king. In Mexico, for instance, Banco de Mexico (Banxico) survey found that over 65 percent of respondents preferred cash as their payment method. This means that merchants considering an embedded multi-rail strategy need to include cash-in and cash-out capabilities. 

At Arcus we understand that our partners need to adopt a multi-rail payment strategy to meet consumer demand. That is why we have built a state-of-the-art payment platform to streamline integration into various payment rails, including real-time payment networks, cash, and others. We are proud to help our partners to become a part of the ongoing evolution to support a broader range of payments, and provide a seamless, integrated, and affordable experience for all. 

Photo by:   Marc Sacal

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