ISOs

Collaboration has now become a constant theme in the payments industry, where longtime enemies are putting aside their differences to survive in the fast-paced digital world.

It's a big challenge to educate small merchants on the importance of data security, but many acquirers and ISOs are jumping at the opportunity to fill the role of educator.

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.

As digital and mobile capabilities have taken hold on payments and data security, acquirers and independent sales organizations have needed to quickly ramp up their tech knowledge.

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.

As trends in payments technology take hold or taper off, it's safe to say that one is firmly entrenched: The shift to mobile and integrated point of sale devices.

One in four acquirers say that how they approached Payment Card Industry security standard compliance caused them to lose merchant accounts.

ISOs and agents have a firm hold on selling payment terminals, but that's not where the real action is. Today, merchant acquiring is about tying payments to things such as advertising, marketing and loyalty programs.

Independent sales organizations and independent software vendors are equally threatened by disruption, making an alliance a logical — if uneasy — step for both groups.

Acquirers and independent sales organizations have long heard a similar refrain: Adjust to the fast pace of technology or perish.

The promise of faster EMV technology is a welcome reprieve for many ISOs who have grown weary of listening to merchants gripe about the snail's pace of chip card transactions. That reprieve, however, may not be so quick in coming.

The payments and financial technology world is moving ahead at high speed. But an acquirer may feel like the only one on the road obeying the speed limit while other companies zoom ahead.

The regulatory winds swirling around acquirers and independent sales organizations are so swift, those who can't stay abreast of the changes are likely to get blown away.

Every product has a "sell by" date, and so should every independent sales organization.

Every product has a "sell by" date, and so should every independent sales organization.

Merchants are facing consumer lawsuits stemming from the introduction of EMV-chip card security at the point of sale in the U.S., exposing the issues many stores must contend with now that they are held liable for fraud and chargebacks.

Mobility's incursion into merchant services is normally treated as a threat to independent sales organizations and legacy acquirers, who will find themselves on the outside as technology-based services take over the store.

To expand the reach of its global e-commerce services, Ingenico ePayments is building up a vast network of connections to merchant acquirers, hoping to gain a competitive edge as the demand grows for omnichannel payments.

It's been a tough time to be a mobile point of sale company, but SumUp believes it's found the right formula to not only get through the shakeout but to thrive.