EVO Payments International has chosen a name to invoke the effect its perpetual software license from IP Commerce Inc. will have for the company EVO Snap.
"We wanted to make it easier for developers to integrate with us, making it a 'snap' to work with us, and for them to 'snap' right into place," says Jeff Rosenblatt, president of Long Island-based EVO.
Thus, the acquisition of Denver-based IP Commerce's technology, as well as some of its employees, will result in a new payments group within the company called EVO Snap, the company announced last week.
"We had all of the pieces in place to be a full-service processor, but not the technology for the integration piece of it," Rosenblatt says.
EVO should benefit from its creation of Snap, because having an open application programming interface (API) is important in commerce of any type, says Scott Strumello of New York- and London-based Auriemma Consulting Group.
"Some are trending toward closed-code environments, such as Google and Twitter, and some tech folks might say the era of an open API or an easier integration is sort of over," Strumello says.
But retailers are always looking for easier integration so they can put their brand on technology that benefits their businesses, Strumello adds. "If it's an integration that doesn't take a lot of thinking to do, that is a plus," he says.
The best way for EVO to get to market with services quickly is to have technology that allows software developers and others to connect with the company, Rosenblatt says.
Developers have been contacting EVO to become part of the company's payments and merchant services programs, he adds.
"It's not just software developers," Rosenblatt says. "It can be any developer, from traditional point-of-sale products, to cloud-based solutions, payment gateways, independent sales organizations and value-added resellers."
EVO plans to launch a new platform utilizing IP Commerce technology in the fourth quarter of 2013.
Peter Osberg, a former executive at IP Commerce, will head EVO Snap. "I have been impressed with EVO's strategy and vision for improving the point of interaction between consumer and retailer," Osberg states in a press release. "With this new technology, EVO can better support the payment needs of developers and merchants."
EVO interacts directly with merchants, while working closely with its member bank, Deutsche Bank, and the major card brands.
EVO provides merchant support through ISOs and value-added resellers who become business partners for the company. EVO's clients and ISOs brand the payments systems. "They want to feel as if it is their product, as well they should," Rosenblatt says.
"We are no longer just a processor," Rosenblatt adds. "We want to help drive business for our clients."
By acquiring the software license and creating Snap, rather than seeking to buy the entire IP Commerce company, EVO avoids the time and money commitment of "maintaining that company," Strumello says.
"Over time, it also gives EVO more flexibility to change technology as the market changes," he adds.