Worldpay, Revel team up to battle fintechs
Revel Systems has entered into a non-equity strategic partnership with global payment processor Worldpay to create and deliver a more comprehensive set of payment solutions for Revel customers.
The partnership, while not exclusive, will help San Francisco-based Revel deliver new point of sale technology to customers as it does battle in an increasingly crowded market of fintechs such as Square and Stripe, as well as POS terminal providers such as NCR and Diebold.
The initial services Revel will offer via the partnership include a more seamless onboarding process for clients and access to Worldpay’s Fast Access Funding for existing Revel customers.
“It’s a more strategic and deeper integration type of partnership. We expect to see more innovation and new services coming from it,” stated Erick Kobres, chief technology officer at Revel Systems.
Revel has focused its iPad POS business on what it calls four different verticals – Quick Service, Restaurant & Bar, Retail and Pizza. Three of these markets reside in an important business line for Square, which launched a product called Square for Restaurants in May 2018 to serve these businesses. In Square’s Q2 2018 earnings, the company reported that 25 percent of its gross payment volume (GPV) came from the food and drink sector.
The competition for POS makers and payments processors to service omni-commerce businesses is strong and growing as there is a rush, particularly among fintechs, to become the next Square, Stripe or PayPal.
“In today’s world of omni-commerce and the digital consumer, we can play further and deeper and at the same time provide a more seamless set of services such as onboarding,” added Kobres.
The challenge faced by store-based POS providers is that as consumers increasingly adopt mobile apps, the point of sale is moving to a digital channel even if the food or goods are delivered or picked up in-store. For example, the New York startup called Slice has been giving independent pizza restaurants basic online and mobile ordering, selling the restaurant’s menu items at in-store prices.
According to Crunchbase, a website that tracks investments in private startups, Revel Systems has raised over $168 million in eight separate funding rounds. Earlier fundraising rounds were positioned for expansion efforts into Europe and Asia as well as to hire additional staff for the growing business.