Oxman sees acquirer opportunity in Silicon Valley

New payment technologies developed in California's Silicon Valley represent opportunities for ISOs willing to adapt their business models to emphasize more value to merchants, Jason Oxman, Chief Executive Officer of the Electronic Transactions Association, said in an interview with The Green Sheet during the ETA's Silicon Valley Day held in San Francisco on Nov. 15, 2012.

Oxman said every company needs a payment infrastructure to get to market, whether the company is an established and well-funded alternative payment provider such as PayPal Inc., which is now expanding into traditional payments territory, or whether it is an absolute newcomer like Clover Network Inc., which offers a new POS system that works with any Android OS-equipped tablet, phone, cash register or kiosk.

"No matter how cool the technology is, it's not worth anything if merchants don't accept it," Oxman pointed out.

Oxman noted that the ISO business model is changing. "The sales representative needs to add more value in their pitch to the merchant," he said. "The ISO needs to offer mobile and cloud payment apps to strengthen its relationship with merchants. At the end of the day, it's still about the merchant. That's what matters."

ETA post-election legislative agenda

When asked about the ETA's legislative priorities following the recent U.S. presidential election, Oxman said the ETA will work to avert the so-called fiscal cliff: the mandatory tax increases and budget cuts required by the Budget Control Act of 2011 to go into effect if Congress doesn't agree on a budget by the end of 2012. "We need certainty to ensure the recovery is not derailed," he said. "Although people voted for a divided government, they sent a signal the economy is a top priority."

Oxman added that he hopes "the legislative component of regulating interchange" is finished and Congress will not risk stifling the innovation and viability of the payments industry by regulating it further. He affirmed that the ETA will continue its efforts to educate legislators and policymakers. The primary ETA message to lawmakers is that "without our industry commerce doesn't happen," he said.

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