The Merchant the first NPC that the player will encounter when starting the game. After killing the first bandit in the starting city, the Merchant will rush up to the player and take him to his home. He will offer a starting quest: Rescue the Merchant's Brother. The quest can be declined, but it does provide an opportunity to get familiar with Pendor and provides some denars and experience.
The merchant will have different names depending on your starting city. For example, if you started at Ravenstern, he will be called "Merchant of Ravenstern."