Selling mobile-processing services can prove quite profitable for independent sales organizations, observers say.
At Process Pink Payments LLC, for example, mobile marketing, including text-message promotions, can nearly double the average commission for a merchant account, says Anthony Holder, president of the North Miami Beach, Fla.-based ISO.
Process Pink has been selling mobile-processing services for about three years, and it began offering a mobile-marketing option shortly after the start of this year.
“Merchants are requesting it like crazy, in addition to gift cards,” Holder says. “Any ISO that offers mobile marketing is going to find a lot of success in eliminating their attrition.”
Although mobile-payment services are not yet a big moneymaker for all ISOs, they could move into the ranks of top revenue generators in the next few years, says Curt Hensley, CEO of Impact Payments Recruiting, a Phoenix-based headhunter for the ISO industry.
Compared with the rise of mobile-payment services, Hensley considers offering merchants free terminals among the least profitable services ISOs and agent can offer. ISOs should take into account how much a free point-of-sale terminal costs them and how long it would take to get a financial return on that investment, he cautions.
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