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Tuesday, April 24, 2018

Paper offers tips for ISOs, ISVs, seeking payment services partners

The payment needs of merchants are changing rapidly, forcing ISOs and independent software providers (ISPs) to rethink their partnerships with each other and payment services providers to optimize client relationships. A white paper titled, The ISO/ISV Convergence: Do Payments Systems Hold the Key to Helping Both Sides Thrive?, published by Paysafe Group Ltd. provides insights on what ISOs and ISVs should look for in payments partnerships.

"The world of payments is becoming increasingly integrated, as everyone – from the merchant, to the acquirer and beyond – does all they can to provide a smooth, seamless payment experience to consumers," said Carla Erlick, Senior Vice President, Sales and Business Development, Paysafe. "In this climate, it's no wonder that ISOs and ISVs are both looking at ways of incorporating each other's products and services into their own offerings, to support merchants delivering the best possible experience to their customers."

The benefits of such a convergence are many fold. "For ISOs, behaving like an ISV opens up a range of potential new revenue streams, by enabling them to work with new customers they would never have been able to support previously," the paper states. "Going down this route can also help ISOs support merchants in streamlining their supply chain, and saving time and resources. Most importantly, though, offering ISV-like services can help ISOs maintain greater control of their customer relationships, so they can optimize retention rates."

The case for ISVs is slightly different. Many are responding to ISOs that are acting more like ISVs, the white paper notes. Others want to cut out the middle man to enhance control over merchant relationships.

Partner considerations

While the benefits of convergence are obvious, it is fraught with challenges, including the time and financial investments needed to find and embed the right partnerships, the white paper counsels. It goes on to offer insights on what ISOs and ISVs should look for in potential payment services provider partners. Key considerations include:

  • How robust is the range of payment methods supported?
  • What kind of support is offered for "fledgling merchants"?
  • What services, apart from payments, do they support?
  • Is extensive customer support available?

"The merging of ISOs and ISVs is showing no sign of abating, and is the key challenge facing the sector in 2018," the white paper states. "To survive, both side of the divide need to look for the right partners to meet their needs. Working with payment providers that are dedicated to pioneering new ways to support both sides of the industry through this convergence phenomenon is central to this."

Paysafe released the white paper in mid-April during Transact, the Electronic Transactions Association's annual convention and exposition. To download a copy, visit www.paysafe.com/isotoisv/ . end of article

Editor's Note:

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

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