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Entrenched, established markets
Global consultancy Strategy& found untapped opportu- Even in mature markets, most
nities for fintechs and mobile money service providers in
emerging markets due to their growing middle class pop- merchant service providers agree
ulations and robust cellular networks. By contrast, estab- it's easier to sell a new end-to-end
lished nations represent a "complex and thorny environ-
ment" with numerous challenges for fintechs, the company solution than to try to mix and
stated in 2015 Payments Industry Trends.
match devices, networks and
Coauthors Mark Flamme and Kevin Grieve cited the fol- service providers.
lowing barriers to entry for fintechs in the United States
and other major markets around the globe:
• A global recession created tepid growth and tighter
credit standards. ment Card Industry Data Security Standard and
the meaning and potential impact of the EMV (Eu-
• Increased regulation and low interest rates forced ropay, Mastercard and Visa) liability shift.
payments industry stakeholders to search for new
revenue streams. • Payments are social: Mass adoption of all forms of
mobile technologies has made payments more so-
• Competition and consolidation prompted financial cial, as consumers use smartphones to comparison
brands to diversify offerings. Discover Financial shop, as well as share images and transactions with
Services and Capital One Financial Corp. are ex- friends. Many payment systems have integrated
amples. social media into their apps, POS equipment and
ecommerce solutions.
• Dominant retail and ecommerce brands such as
Amazon and Wal-Mart Stores Inc. are challenging • Payments are international: Consumers are
payment card brands, demanding lower prices for shopping everywhere in the world from their
interchange and creating friction between mer- mobile phones, using preferred payment methods.
chants and financial institutions. Merchants need the ability to accept multiple
currencies and cross-border payments.
Merchant microcosms
As they grow more adept at building their portfolios, many
Merchant level salespeople (MLSs) working in emerging MLSs recognize that each merchant relationship is a distinct
markets and developed metropolitan communities are on ecosystem with its own unique environment and needs.
the front lines of innovation. Their relationships with mer- This holistic perspective helps them identify opportunities
chants rival those of many other service providers, giving and guide their merchants through a dazzling array of
them invaluable insights and a competitive advantage. digital resources to create customized, innovative business
solutions.
The payments industry has evolved in response to the
global retail ecosystem. Here are several reasons why MLSs Dale S. Laszig, Staff Writer at The Green Sheet and Managing Director at
lead with business solutions, not payments:
DSL Direct LLC, is a payments industry journalist and content provider. She
• Payments are ubiquitous: Credit cards have pen- can be reached at dale@dsldirectllc.com and on Twitter at @DSLdirect.
etrated former cash-only businesses, from taxis to
micro-merchants. Credit card acceptance has be-
come easy and affordable.

• Payments are embedded: Large and small mer- We are dedicated to the
chants are using intelligent business platforms
with embedded payment processing, making a ho- education and success of the
listic business mindset essential to selling payment
processing. ISO and MLS.
• Payments are subject to security and compliance
regulations: MLSs need to educate merchants
about payment card security, including the Pay-

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