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Education

Of course, investors will like the notion of a payment MBAs are taught to create business models and run with
technology provider having a direct relationship with them on their theoretical purity. In the contemporary
thousands or millions of consumers—but that direct reality, however, dogged pursuit of a business model
relationship carries risk (data hack) and responsibilities could mean the end of a business, as it might miss the
(FTC-compliant disclosures, and so forth). opportunity to pivot into new ways of turning a profit.

Payment technology providers are often hypnotized by From a legal perspective, flexibility is perhaps the most
the Uber model of being on direct terms with everyone important aspect. Payment technology providers should
and owning the whole network. Maybe, however, the consider baking into their terms of use a degree of
provider’s value is more subtle and no less viable as a flexibility such as the right to alter the model somewhat
back-office function for the merchant who handles it on a without having to fetch a new signature or consent.
white-label basis. Naturally, the purpose in this type of situation is not
to deceive but simply to maintain a relentless drive for
Flexibility frictionless added value.
Payment technology models are more likely to succeed
when they have a built-in culture of flexibility around Once upon a time, a business had a defined product and
commercial terms. This does not mean caving to merchant sold it for a defined price. Those days are long gone, and
demands on pricing, etc. Instead, it means maintaining we are now in an economy with an elastic clockwork of
a healthy enthusiasm to revisit models and consider relationships that we hope will add value for everyone.
switching up the logic when that makes sense.
In publishing The Green Sheet, neither the author nor the publisher is
For example, a given payment technology may work best engaged in rendering legal, accounting or other professional services. If
on a pay-per-use basis for a given set of merchants, but for legal advice or other expert assistance is required, the services of a com-
another set of merchants, it might make sense to pay the petent professional should be sought. For further information on this
merchants to use the service—because it yields data that article, please contact Adam Atlas, Attorney at Law via email at atlas@
will enrich the service for the paying cohort. adamatlas.com or by phone at 514-842-0886.