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This is key, because no matter how simple or complex a business, its number one line it calls Scoop. "With Scoop, we
priority is generating revenues. Most don't care how they're paid for products or give our [payfac] customers the con-
services as much as they care about accessing the proceeds from sales as quickly fidence that their payment process-
and efficiently as possible. WePay isn't just a merchant play for Chase, though. ing is handled by a trusted partner
WePay's technology can also support payfac up-and-comers. "[W]e'll give ISVs with global capability, both securely
[integrated software vendors] a payment facilitator-like experience without the and efficiently," Ian Drysdale, Execu-
overhead or increased fraud risk," Kane said. Meanwhile, Chase said it plans to tive Vice President for Global Ecom-
convert WePay into its payments technology incubator. This should enable it to merce at Elavon, said in a statement.
keep pace with evolving payment technologies and changing business models.
Merchant acquiring has come a long
Chase isn't alone among banks seizing opportunities presented by payfacs. way from when simply signing mer-
Leading acquirer Elavon Inc., a subsidiary of U.S. Bank, has a payfac service chants up for card acceptance was
lucrative for banks and their acquir-
ing partners. Today, more than ever,
success is predicated on relation-
ships and partnerships that drive
transaction growth. The ascent of
payfacs is the latest evidence of this
trend.
Banks and merchant acquirers
aren't the only businesses thinking
this way. Jonathan Auerbach, Chief
Strategy and Growth Officer at
PayPal, spoke to this same trend at
the 2017 World Economic Forum. He
described PayPal's efforts to act as a
"bridge" between technology firms
and banks. "We are firmly shifting
away from viewing other financial
services entities through the tradi-
tional competitor lens," he stated.
"Instead we are seeking opportuni-
ties where collaboration can help us
and our partners expedite the pace
and increase the scale of innovation,
to the ultimate benefit of our cus-
tomers."

"The ability and will to collaborate is
emerging as a strategic imperative in
the ongoing digital transformation
of the financial services industry,"
Auerbach said. He suggested other
industries would do well to pursue
similar strategies. "When done right,
strategic partnerships can provide a
path to fully realize the growth po-
tential inherent in the digital trans-
formation" that faces all industries,
Auerbach added.

Patti Murphy is Senior Editor of The Green
Sheet and President of ProScribes Inc. She is
also the founder of InsideMicrofinance.com.
Email her a patti@greensheet.com.

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