Gratify
Industry Report · 2026 Edition

The State of Merchant Onboarding

How automation, AI, and regulatory shifts are reshaping the way ISOs, PayFacs, and acquirers bring merchants to market.

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22 pages of industry data
90-day transformation roadmap
Real executive insights
Automation maturity model
The State of Merchant Onboarding - 2026 Industry Report by Gratify

Key findings from the report

$496
Avg. cost per merchant at banks
vs. $15 at automated PayFacs
30–35%
Merchant drop-off rate
during manual onboarding
60–70%
Underwriter time wasted
on low-value data entry tasks
15%
Application pend rate
from static, non-adaptive forms
The State of Merchant Onboarding ebook

Download the free report

Get instant access to the full 22-page industry report with actionable insights for your organization.

In this report, you'll learn:

  • Why manual onboarding costs up to 30× more than automated alternatives
  • The five technology trends reshaping merchant activation in 2026
  • How to assess your organization's automation maturity level
  • A concrete 90-day roadmap to transform your onboarding process
  • Regulatory changes that affect your compliance workflow right now

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The onboarding gap is costing you merchants

69% of merchants demand fast, seamless onboarding — yet only 13% of banking executives believe their institutions can deliver it. Traditional onboarding still takes up to 7 days and costs as much as $496 per merchant. Automated PayFacs do it in 15 minutes for $15.

This report shows you exactly where the gap comes from — and how to close it.

What's inside

9 chapters of actionable insights

01
Executive Summary
The key findings and why they matter for your business
02
The Hidden Cost of Manual Onboarding
Direct costs, drop-off tax, rework burden, and the hidden cost of Excel
03
Regulatory Landscape 2025–2026
BNPL regulation, AML/CDD reform, AI decisioning scrutiny, cross-border compliance
04
The Technology Gap
Where most organizations are stuck — static forms, SFTP bottlenecks, and the automation divide
05
Five Trends Reshaping Onboarding
AI underwriting, dynamic forms, real-time KYB, self-serve platforms, perpetual monitoring
06
The Automation Maturity Model
Five levels from fully manual to autonomous — assess where you stand
07
From the Field: Real-World Scenarios
Anonymized insights from dozens of conversations with payments executives
08
90-Day Transformation Roadmap
A concrete action plan to close the onboarding gap at your organization
09
About Gratify
How Gratify is helping ISOs, PayFacs, and acquirers automate onboarding

From the field

What payments executives told us

"

We have 7 people whose entire job is chasing documents that should've been collected correctly the first time.

— VP of Operations, Mid-Size ISO

"

Our underwriters spend 60–70% of their time on tasks that don't require any judgment.

— Head of Underwriting, Acquirer

"

Every pended app is a merchant waiting to process — and a competitor who might close them first.

— CRO, Payment Facilitator

The State of Merchant Onboarding ebook

Ready to close the onboarding gap?

Get the full report — 22 pages of industry data, executive insights, and a 90-day roadmap to transform your merchant onboarding.

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