Page 32 - GS131101

ChapterTitleViews

Benefit by adopting an as- can support a consultative relationship.

a-service business model POS systems provide time- and money-saving features
for customers. They increase efficiency by reducing
the time it takes to complete virtually every aspect of a
By Sean Berg business’s operations. This increases the number of tasks
that can be performed by each staff member, allowing for
Harbortouch
a reduction in staffing expenses. Additionally, shrinkage
he payments industry is in flux. This is a time of is greatly reduced by decreasing the potential for human
uncertainty when the market can be disrupted error. It is also easier to track potential loss due to theft.
at a moment’s notice. The face of transaction Further, comprehensive reporting functionality delivers
T processing may change with the implementation a wealth of actionable business data while reducing
of Europay/MasterCard/Visa, near field communication accounting and bookkeeping expenses.
or any number of mobile payment methods. The market ISOs and MLSs in control
trends are no longer being dictated by acquirers. Instead,
the future will likely be decided by merchants and con- These benefits, along with others offered by POS systems,
sumers. typically result in a 4 to 8 percent increase to a merchant’s
bottom line. POS systems can become central to a business’s
In addition to the threat of technological disruption, entire operations and make payment professionals valued
changing policies and regulations could
shift the entire payments landscape at any
time. In this unpredictable environment, Previously, payment processors, POS dealers and IT
we must embrace solutions that offer
stability and protect against disruption. consultants were separate entities, each providing a
distinct function. As the lines between these industries
The as-a-service trend
have blurred, affected professionals have begun to
A trend that has surfaced within the realize they must understand all three worlds to compete
information technology (IT) industry to in an ever-changing environment.
combat similar uncertainty, and which fits
nicely into the existing payment business
model, is that of software/hardware-as-
a-service. Credit card processing in general emphasizes consultants. This ensures that as new payment technologies
long-term relationships over one-time equipment sales, arise, ISOs and MLSs will be the ones to implement them.
so our industry is already aligned with an as-a-service This approach removes the risk of disruption by putting
business model. However, the problem is that a stand- ISOs and MLSs in control of the POS.
alone credit card terminal is no longer a valuable enough Previously, payment processors, POS dealers and IT
piece of equipment to command long-term retention. consultants were separate entities, each providing a
distinct function. As the lines between these industries
POS and IT resellers have begun shifting from their have blurred, affected professionals have begun to realize
upfront equipment revenues to offering hardware at a they must understand all three worlds to compete in an
lower cost with long-term service agreements. In fact, this ever-changing environment. Taking a page from these
shift toward as-a-service was the focus of a recent POS other industries enables ISOs and MLSs to reclaim lost
reseller conference called Channel Transitions. Many margins and future-proof their businesses.
resellers have leveraged free equipment programs offered
by merchant acquirers to make this transition, since it Within this article I have referenced many trends affecting
allows them to reduce their upfront costs. This trend has our industry, each of which presents various challenges
brought stability to the reseller business model and offers and opportunities. I will elaborate on each of these topics,
a similar promise for the payments industry. as well as many others, in future articles.

No longer just a bankcard rep Sean Berg is National Sales Trainer at Harbortouch, a leading
national provider of touch-screen POS systems and payment
By implementing an as-a-service business model with processing services. As pioneers of the “as a service” model,
more compelling and valuable equipment, ISOs and Harbortouch offers an unprecedented “free” POS program that
merchant level salespeople (MLSs) can establish the allows the company’s sales partners to offer a full-featured POS
same type of consultative relationship that has long system with no upfront costs. As National Sales Trainer, Sean
been enjoyed by IT and POS resellers. This approach trains the company’s ISO and MLS partners on all aspects of POS
enables an ISO or MLS to become the merchant’s most systems and the free POS program. Prior to becoming National
valuable vendor instead of just another bankcard rep. As Sales Trainer, Sean was an IT industry consultant and a manager
full-featured, touch-screen POS systems become more in Harbortouch’s POS division. For more information, contact
accessible to the acquiring community, this equipment sberg@harbortouch.com.

32
32
32