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CoverStory
The spread of COVID-19 has significantly affected my ISO We have data showing the hospitality industry
clients. (restaurants and hotels) are experiencing week-over-
week volume declines on the order of 50 percent or
Example 1: One of my clients does processing for more.
schools so their business has dropped significantly.
3. We have a number of programs in place as
Example 2: Another client is big in POS installations mentioned above. For our merchants, we are waiving
in restaurants and bars. They have been working costs associated with online ordering, curbside and
very fast to bring up dozens of online ordering sites home deliveries (Skytab), as well as gift cards. We
for clients. The switch to carry-out and delivery is actually have found many consumers trying to help
charging ahead at full speed. their favorite restaurants survive difficult times by
purchasing gift cards … so we have waved all costs
Fortunately, I am continuing to get referrals from industry associated with that program.
attorneys, ISO clients and others. And I have two new
consulting and training projects in the works. I have been We are also going to be promoting a program where
reassuring all my ISO clients that I am still at work every Shift4 will match a portion of every gift card sold.
day. So, for example, if a consumer buys a $100 gift card
at one of our merchant locations, we may match up
Surely no one can say at this point what the long term to $10 and send the merchant $110. For our sales
picture looks like. I suspect the economy will probably partners, we have provided a number of incentives
undergo a recession like in 2008 to 2009. Unfortunately, to help them win business during this challenging
those with little resources and few financial options will time. For example, we have included a number of
probably be hurt the worst – those in poverty, hourly extra software and services that would otherwise
workers in hospitality or travel, under-capitalized small have charges in our new merchant offering.
businesses, small businesses which depend on good cash
flow to keep paying employees, suppliers and building Our sales partners do best when they have a
leases. It will probably take a couple of years for the compelling value proposition that includes cost
economy to climb out of the hole this makes. We are all savings for merchants. That is what we are arming
working for and praying for a better result. our partners with. We have also launched other
programs to provide extra liquidity to our sales
Jared Isaacman partners.
Shift4 Payments
4. I honestly think it will be hard for any company
to provide wide-scale financial assistance or loans
1. The impact is rather significant. Like most to merchants other than the government. None
companies, our top priority is making sure our of us have a crystal ball when this crisis will end,
employees are healthy and comfortable, so we have and trying to be a complete solution for such an
transitioned largely to a work-from-home model. enormous problem is really impractical. This is why
We also serve a large portion of the hotel and our government leadership passed a $2 trillion aid
restaurant industry, so a lot of attention is toward package. We all need to play a part in the recovery,
helping them navigate these difficult times. That and in the case of Shift4, we are waiving a lot of costs
is why we launched www.shift4.com/situation and that merchants would otherwise pay and providing a
have implemented a number of incentives to help multitude of incentives. Ultimately, the big recovery
our merchants migrate to online ordering, delivery dollars have to come from the government.
services and curbside pick-ups.
5. Again, I don't think any of us have a crystal ball
2. Shift4 technology powers about 210,000 merchants, to predict when things will get back to normal or
the majority of which are in the restaurant or hotel what the new "normal" will even mean. I can look
verticals, so for sure they have been considerably at history and say the world will keep on turning.
impacted. Our volume data is still up quite a bit These viruses have a habit of disappearing, and
YTD and YOY, but that's because we have largely society and life resumes. I know people are going to
been successful taking share from our competition. sit down and eat in restaurants again. I know people
When you drill down to individual merchants, they will travel and stay in hotels and that commerce will
are definitely suffering from the various government resume. Like the rest of us, I am hopeful this recovery
restrictions and social distancing measures. happens in the near future.
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