Page 36 - GS180601

CoverStory

understand GDPR's implications, over time we will see this regulation put to products they can afford. "They
control back in consumers' hands. offer not only fast funding but cor-
rect funding," he said. "When they
"Merchants who make data sharing comfortable for consumers will earn handle short-term cash needs, they
their trust, and merchants who understand that consumers' identity data don't want to get the money and get
is their digital DNA will ultimately win in the digital age. All participants in out. They want merchants to use
the digital ecosystem – merchants, consumers, banks – need to understand the funds to achieve objectives and
that if we don't own our data, someone else will." become successful. They want to be
3. Be resourceful: offer a diversified product mix top of mind when [merchants] have
their next cash need."
Today's merchants want intelligent systems with apps they can use to manage
their businesses from anywhere on any device. Following is a sampling of Vertical solutions: We're seeing
products experts highlighted: technology play a larger role in
merchant life, observed Benny Sil-
Small business loans: Darren Schulman, President of 6th Avenue Capital, berstein, co-founder at Payrix LLC.
has seen growing interest in small business loans and merchant cash ad- "Technology companies are build-
vance, which involves the purchase of a merchant's future credit card pro- ing systems with payments apps
cessing receivables. If your merchant needs access to short-term cash, MLSs inside. In the world of verticalized
who know funders are a valuable resource, Schulman said. "Having multiple selling, payments have become a
products in your toolkit makes you a well-rounded consultant and strength- value-add," he said. "If you ask a
ens your customer relationships," he added. "Understand your merchants' merchant who their payment pro-
needs, then introduce them to the right people. Selling things you don't un- cessor is, 90 percent will answer
derstand is the worst thing you can do in this business." their POS vendor. He's the one who
installed everything and helped
Schulman advises agents to look for funders with a long-term relationship them fill out the credit card appli-
focus. Companies that do what is best for merchants and take care of people cation. Merchants don't care who's
who broker deals outperform others that focus on short-term gain, he noted. processing the credit cards. They
The best funders understand merchants' needs and cash flow and direct them care about the solution."
Silberstein suggested specializing
in industries where friends or rela-
tives work and promoting solutions
that solve problems. "If it's account-
ing, go to accounting conferences
and get to know accountants," he
said. "Every industry has confer-
ences. Walk the floor; eventually
get a booth; get to know the indus-
try. Once you become known and
have the right technology, mer-
chants will send you referrals."
Integrated POS: Growing numbers
of co-branded, interoperable solu-
tions reflect the payments indus-
try's shift from closed-loop, pro-
prietary operating systems to open
source platforms, Silberstein said.
"Device manufacturers and service
providers are deploying integrated
POS systems with built-in app mar-
ketplaces," he added. "And the same
third-party apps are accessible on
countertop POS terminals and con-
nected devices."
ISOs and acquirers are branding
and tailoring app marketplaces
to fit merchants' business models
and industries, Silberstein noted,
adding that these apps expand a

36