The payments industry is becoming more specialized and segmented. While taking a leadership position in your market is great, don’t get complacent. In the meantime, Go Fund Me took a chunk of fund raising Stripe took over eCommerce and Square took a big bite out of merchant processing. But rather than capitalizing on this position to dig deeper into niche applications of their technology, they stayed more generalized. They became the gold standard in person-to-person payments. #3 – Paypal and lessons about missed opportunity. Seek out their pain points to create unique offers tailored to them. ISOs and sales reps should start thinking outside the box about decision makers who control payment processing decisions. They should also make integrating with their gateway easy. They should understand why Stripe documentation and implementation processes are so far ahead of the competition. Instead, these increased costs are being paid by merchants as a cost of entry to get the best technology developed.Īcquirers who are trying to land ISV clients need to talk to developers about Stripe. Stripe charges a huge premium for this added convenience, but their target market isn’t paying these fees. They target developers and web designers who are frustrated with more complex alternatives like.
But Stripe also teaches us to be creative with our target audience. Stripe and Square both teach us that simplicity matters. #2 – Stripe and growth in eCommerce processing. How is your brand positioned with your target market? Are you building a valuable brand with merchants? Is your program simple enough to communicate effectively using brand messaging? Second, branding can work as a marketing strategy for payment processing. First, merchants want simplicity and are willing to pay for it. What is the opportunity?īy paying attention to Square, you should learn two valuable lessons to apply to your ISO. Physical location businesses processing $10,000 to $100,000 are starting to view Square as a viable option. Square not only has a strong hold with micro merchants, they are starting to cut into our core clients. #1 – Square and the shift towards simple payments. Each of these poses a unique challenge and opportunity for ISOs and agents.
Today, not only are these two companies changing the payments industry, they have been joined by three other disrupting brands: Square, Stripe, and Groupon. However, no one viewed them as a major threat to ISOs. When I first got into payments ten years ago, Amazon and Paypal existed. There are five companies that, taken together, represent the largest threat to ISOs and agents in the merchant services industry.
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