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April 27, 2020 • Issue 20:04:02

Payments companies step up

to help amid COVID-19 crisis

"The payments industry has the ability to help," said Adam
Bloomston, president of merchant acquirer Payroc. "We
have unique insights into what's going on in the small
business market." "If small businesses go down, what will
payments companies do?" he said, acknowledging that
acquirers have skin in the game.

Stark numbers, helping hands
The COVID-19 pandemic, caused by the novel coronavirus,
has hit businesses large and small like a sledgehammer.
A survey of small and midsize business, conducted
March 27 to 30, 2020, by The Strawhecker Group, found 37
percent were closed to some extent, either temporarily or
indefinitely, due to the pandemic. Among SMBs that were
still open, 26 percent had experienced sales drop offs in
excess of 50 percent since the pandemic began.

The U.S. Commerce Department reported retail sales were
down 8.7 percent in March compared to February, the
By Patti Murphy largest one-month drop ever recorded.
usinesses everywhere are getting hammered by There are some bright spots. TSG said 66 percent of SMBs it
plummeting sales, as social distancing and stay- surveyed in healthcare saw sales increase. And the Dallas-
at-home orders keep millions of customers and based restaurant chain Wingstop reported a boost in sales
B prospects out of their shops. Payment process- for the fiscal quarter ending March 31, despite being forced
ing companies and their partners are stepping up to the to suspend dining room service in mid-March and relying
plate, offering lifelines like marketing and other services at
no cost, fee reductions, loan guidance and even outright
grants of money.

"Everyone is suffering right now," said Walter Allen, Contributed articles inside by:
national sales manager for the commerce division at
Sound Payments, which provides merchants with POS
technologies through its ISO partners. The company is Marc Beauchamp ..................................................................................28
waiving Sound POS service fees for three months for all Scott Goldthwaite ................................................................................30
existing merchant customers as well as new merchants
added in April. "We're trying to ease some of the pressure," Simon Fairbairn .....................................................................................32
Allen said. Adam Atlas ..............................................................................................34

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