Accelerated Payment Technologies Inc. hopes its recent name change will further its ambitions to sign up more merchants for its point-of-sale processing services. It also is looking for a bit of help from software vendors.
Accelerated Payment, a Pleasant Grove, Utah-based independent sales organization, is an offshoot of CAM Commerce Solutions, a POS-system maker based in Fountain Valley, Calif. CAM sold its POS software business in May and renamed its online payment gateway unit Accelerated Payment.
Accelerated’s strategy is simple, Roy Banks, Accelerated CEO, tells PaymentsSource. It will work with software makers to build in payment-processing functions into their software.
Software makers “go out and sell that integrated [service] as part of their software mix,” says Banks, who previously was president of gateway Authorize.Net. “Merchants get a merchant account from Accelerated.”
In that arrangement, Accelerated will sell the merchant services on behalf of the software company.
Accelerated’s merchant accounts only are available when a merchant uses software from one of Accelerated’s partners. Merchants want more than a simple POS terminal, especially if a computer that will accomplish many other business functions in addition to payment processing is available, Banks says.
“What’s become very, very clear with the low cost of computing power, [merchants] like to have integrated payment processing that rolls into their accounting and inventory-management [services] across locations,” he says. “It only makes sense to try to bring all that together into a single application.”
Accelerated’s pursuit of merchant accounts via software companies is a sound strategy, says Mike McCormack, president of Palma Advisors LLC, a Fort Lauderdale, Fla.-based consulting firm.
“One of the best things about [their strategy] is, if you can become a trusted provider in a particular space, someone else’s ability to dislodge you becomes less and less likely,” McCormack tells PaymentsSource. “The reality is the software space constantly changes. Today’s hot software company is probably not going to be the same one four years from now.”