As ISOs evaluate payment partners, it’s important that to dig into their existing tools and also gain an understanding of what the company’s continued investment is going to be for the future, writes O.B. Rawls IV, CEO and president of iPayment.
Same-day Automated Clearing House transactions exist, in part, as a first step in the faster payments initiatives taking place in the U.S. But are they lucrative enough for acquirers to add to their portfolio?
Increasingly, the acquiring and ISO business has taken the view that advances in technology that originally looked like threats instead made it easier to sell more products and support more payment types. But this opportunity won't last forever.
The U.S. merchant acquirer-processor arena is so mature that the only dramatic gains typically come from consolidation, leading to even more formidable combinations that make the next phase of growth even tougher. But there are also opportunities for companies that know how to specialize.
It's difficult for acquirers to have the proper payments technology available when merchant interest peaks. This is even more difficult as efforts such as Smart Cities and Internet of Things initiatives overwhelm retailers with options.