Rise above the Race to the Bottom: Growing Sales and Revenue Despite Downward Pressure
The payments landscape is undergoing a seismic shift, with downward pressure on traditional revenue streams squeezing independent sales organizations, agents (ISO/Agents) and independent software vendors (ISVs).
This “race to the bottom” is accelerating. Capgemini projects that noncash payments volumes will grow a healthy 15 percent year-over-year for the next five years. However, BCG indicates that transaction revenues will grow at less than half that rate, about 7 percent.
How can ISO/Agents and ISVs buck this trend to grow new revenue streams, maximize margins and become essential partners with their customers?
You can take decisive action to differentiate themselves and satisfy the growing appetite for solutions that are speedy, safe, reliable and profitable.
Diversification: Diversify your offerings beyond traditional card processing to include value-added services like data analytics, loyalty programs, and marketing solutions.
Integration: Solutions that bridge the gap between disparate processes make it easier for merchants to streamline how they manage their business, for example through ERP integration, OCR capabilities, funding/advances, etc.
Artificial Intelligence (AI): A partner who delivers payment solutions with AI inside will help you and your customers retain profitable business efficiently, identify and onboard new business faster, and eliminate costly, routine tasks.
Niche Markets: ISOs and ISVs have the opportunity to deliver solutions that address the unique needs of niche markets where there is less competition and higher potential profit margin.
Partnerships: Collaboration with the right players in the payments ecosystem can help you quickly achieve scale. To sustaining growth in the changing landscape, work with a partner with equally strong pillars of technology, expertise and customized, personalized support.
Security: Contactless payments, mobile wallets, and self-checkout systems can improve efficiency, reduce processing costs, and attract customers who seek modern payment solutions. But you also need safeguards against the higher risk of fraud that comes with the territory.
Risk Management: To confidently (and profitably) deliver “buy now/pay later” and other fast-growing credit solutions, you need a partner who combines sophisticated technologies for rapid underwriting with risk management expertise.
Five Questions to ask Your Payments Fintech
To rise above the “race to the bottom,” you need a robust partnership and suite of payment solutions that will grow your portfolio, while minimizing risk and increasing margins. To evaluate how far your potential fintech partner will take you, ask the right questions in these key areas:
Let It Go – Leaving Legacies Behind
How do you uproot legacy processes—and change mindsets— to fully embrace the speed, security and convenience of rapidly evolving payments? Is your partner committed to building a relationship built on the trust and continuity you need to leverage new technology?
The Need for Speed
What are the new innovations “under the hood” that prevent security, risk management and compliance from creating speed bumps? Ask how their solutions exceed customer expectations for accuracy AND speed in approvals, boarding, processing, reconciliation and remittance.
Hello from the Other Side
What are your service commitments? Customer experience is everything. Ask how they deliver efficient, fine-tuned automated services, backed by well-trained, human problem-solvers.
Spot the “Integration” Head Fake
What’s behind the curtain? Your provider may say their solutions are “integrated,” but you might discover otherwise – the hard way. Dig deep to avoid surprises and ensure simple seamless integration.
All Things Apps
What apps can be mixed and matched? Ask what combination of solutions they can offer your customers with the ease and flexibility of an app store. Are the integration steps as clear and simple as following a recipe?
Vendara: Payments Accelerated
Vendara leverages the strong infrastructure of payment technology and support systems built over the last 15 years to offer seamless payment processing and robust services. We make it easy for ISO/Agents and ISVs to build their merchant portfolios with confidence.
Talk with a Vendara Expert: sales@VandaraPayments.com