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CoverStory

A survey of small and midsize consumer, just like DoorDash and UberEats, but it's less,"
business, conducted March 27 to 30, said Jason Felts, Bryte Payments CEO.
2020, by The Strawhecker Group, Smaller ISOs – Impact PaySystem and National Merchant

found 37 percent were closed to Services among them – have taken similar steps. "We're
trying to help them get more money in the door," said Rick
some extent, either temporarily or Johnson, president of National Merchant Services, which
indefinitely, due to the pandemic. is foregoing setup fees for its new online ordering service.
He noted that much of the feedback he's receiving from
Among SMBs that were still open, 26 restaurants relates to data insights the service offers on
percent had experienced sales drop their customers. "Down the road, once this is over, they
will be able to use that data to help get customers back in
offs in excess of 50 percent since the their restaurants," he added.
pandemic began.
"It is highly probable that this crisis will define food service
winners and losers by their digital proficiency, since
exclusively on takeout and delivery service. Ecommerce consumers may prefer the contactless delivery protocol
sales are also growing. "We're definitely seeing a surge that digital ordering offers," said David Portalatin, vice
president and industry advisor for food service at NPD.
in ecommerce," said Nick Starai, chief strategy officer at
payment gateway provider NMI. "Now that we're living in a world where the entire industry
is an off-premise business, digital orders gain importance
and provide an edge to those who already lead in that
Some of that growth in being driven by online grocery space."
orders. A March 23 to 25 survey by marketing consulting
firm Brick Meets Click and the online fulfillment platform "The ISO community and the feet on the street have always
ShopperKit found 31 percent of households had used an
online grocery service for pickup or delivery over the been good at figuring out ways to promote merchants and
provide value," Starai said. "We're definitely seeing some
previous month, compared to just 13 percent of households
last August. innovative things."
Financial and marketing assistance
But most businesses are hurting. A survey of small
businesses by the National Federation of Independent Payroc launched several initiatives to help its 55,000 small
Businesses found 92 percent had been negatively impacted business clients through the pandemic, Bloomston said,
by the coronavirus pandemic as of March 30, with the including Paycheck Protection Program loan assistance
majority of those businesses (80 percent) reporting slower through a partnership with Womply. The firm also set up
sales. a GoFundMe page to raise money for merchants in need,
and it offers free marketing services.
Visa, through its Visa Foundation, committed $200 million
in grants and investments to help small businesses and "The first thing we did was to stop all internal marketing,"
nonprofit organizations, including a Back to Business Bloomston said of the company's response to state-
data base that highlights merchants in regions hard hit imposed stay at home orders. Payroc's marketing team of
by the downturn. Visa also is waiving monthly service 12 was "re-galvanized" into a "marketing agency" devoted
fees through June 1 for new clients of its Authorize.net to serving clients. "We're not making any money on this,"
ecommerce gateway. he said. "Our position is that we just want to help our
small businesses."
Restaurants have been among the hardest hit by stay-at-
home and social distancing directives. The market research The free marketing services include website enhancements,
firm NPD Group reported that customer transactions at ecommerce and shopping cart development, social media
U.S. restaurants were down 41 percent the week ending campaigns, and graphic designs for online and print ad
April 5, compared to the same week in 2019. campaigns.
Payroc's GoFundMe page – #Bucket Brigade – had raised
The downturn in restaurant sales has led to a surge of over $28,500, largely from company executives and friends,
interest in online ordering solutions, with several ISOs as of April 13. The company plans to hand out $500 grants
offering restaurant clients alternatives to the national from the kitty to clients in need, Bloomston said.
aggregator delivery services. Bryte Payment Solutions,
in Jacksonville, Fla., is offering to deploy online ordering Payroc also has been sharing stories with clients on how
solutions with no setup or monthly service fees, at other small businesses are reworking business models to
least for the duration of the pandemic. And unlike the soldier through the pandemic. For example, a restaurant
national aggregators, Bryte receives no commissions that is preparing meals and sending wait-staff out to a
from restaurants. "We charge a minimal service fee to the local park where they're selling meals from their cars, and

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