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 and satisfy the growing appetite for solutions that are speedy, safe and reliable?

They can take decisive action to differentiate themselves, become essential partners with their customers and grow new revenue streams in the competitive payments ecosystem.

Diversification: ISOs need to diversify their 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 solutions make it easier for merchants to streamline how they manage their business, for example through ERP integration, OCR capabilities, funding/advances, etc.

Focus on Niche Markets: ISOs and ISVs have the opportunity to engage niche markets where there is less competition and higher potential profit margins.

Partnerships: Collaboration with the right players in the payments ecosystem can help ISOs achieve scale. Sustaining growth in the changing landscape requires 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 ISOs 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, ISOs need partners who combine sophisticated technologies for rapid underwriting with risk management expertise.

Questions to ask Your Payments Fintech

To rise above the “race to the bottom,” what questions should ISOs and ISVs ask of a fintech company to ensure a robust partnership and suite of solutions that will grow their portfolio?

Let It Go – Leaving Legacies Behind
How do you uproot legacy processes—and legacy mindsets— to fully embrace the speed, security and convenience of contactless payments?

The Need for Speed
Expectations for accuracy AND speed in approvals, boarding, processing, reconciliation and remittance are escalating. What are the new innovations “under the hood” that prevent security, risk management and compliance from creating speed bumps?

Make AI Your Best Friend
Best friends are dependable, and they keep it real. What do you want AI to tell you about what’s REALLY going on in your portfolio – faster and more transparently than your best friend?

Hello from the Other Side
Sometimes customers like to help themselves, and sometimes a well-trained, human problem-solver on the other side of the help desk makes all the difference. What are the service commitments your partners should make?

Spot the “Integration” Head Fake
Your provider says their solutions are ‘integrated.’ But, you might discover otherwise – the hard way. How do you determine upfront who is really behind the scenes?

All Things Apps
Imagine you can design a combination of solutions for your customers with the ease and flexibility of an app store. What’s on your “dream” menu?

Vendara: Payments Accelerated

Leveraging the strong infrastructure of payment technology and support systems built over the last 15 years, Vendara offers seamless payment processing and robust services that make it easy for ISO/Agents and ISVs to build their merchant portfolios with confidence.

Talk with a Vendara Payment Expert: sales@VandaraPayments.com

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Choice Merchant Solutions is now Vendara Payments.