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Education

The cost of a pay-at-the-table solu- 5. Merchants aren't responding to statement reviews and cost savings. Be-
tion (along with a POS that sup- fore the pandemic the race to the bottom was a huge issue. Cost was king,
ports it) may not be within smaller and profit margins shrank. Many hit bottom and started to dig.
merchants' budgets. Recognizing
this, providers have created QR Selling just cost savings without understanding the merchant's processes,
code solutions, which are likely market, internet presence and structure will not lead to sales. Merchants
within the budget of small restau- want to save money, sure, but they understand that payment processing
rants. QR code transactions are still must be an integrated part of an overall solution. If an MLSs isn't prepared
newer to the market, but they will to examine their current offering to find the holes so they can better address
gain traction. merchants' pains, merchants will send them packing.
3. Consolidation and acquisition Before I close, let me thank those of you who have read this series (as well as
will continue: A payments compa- previous articles I've written for The Green Sheet.) I've heard from many of
ny cannot remain static. The most you, and it's been an honor to spill a little knowledge candy for you to use. It's
successful companies of all sizes my hope that something I've written has been useful in growing your business,
have always had an exit strategy, regaining confidence and acquiring the knowledge you need to be successful.
for example, a trigger to sell the
company, a point where acquisition This business may change often, but I still see it as a true entrepreneur's dream.
of other companies is necessary for You control your financial success if you continue to seek out usable knowl-
growth, or even a point where a edge. Remember, don't listen to only one source. Network and find mentors.
merger of equals becomes logical. The future of payments is as bright as it was in its infancy. I know you'll do us
old-timers proud.
The companies involved see these
as the next steps for growth. How-
ever, the sale of a processing com- Jeff Fortney, a senior associate at The Strawhecker Group, is a long-time payments industry execu-
pany often creates uncertainty for tive and mentor. He is focused on sharing his industry knowledge and experience with others to
merchants. Similar to rate changes, help them grow their business. He can be reached at 214-458-1379.
such sales may cause merchants to
be more open to other options.

4. The days of "big iron" will end:
Merchants' use of server-based
processing solutions has dwindled.
Newer, faster, SaaS-based solutions
with semi-integrated POSs have be-
come the choice for the majority of
merchants. The pandemic hastened
conversion to an SaaS or hybrid
form of POS for all merchant types.

The key is semi-integration, along
with tokenized sales. The card
brands rolled out a slightly dis-
counted interchange cost for to-
kenized transactions. Along with
this benefit, the cost of hardware to
implement SaaS solutions is lower
than that of traditional equipment.
Providers can often link the mer-
chant's web page directly to the
POS, helping them expand their in-
ternet presence.

The days of the terminal as a stand-
alone solution are coming to a close.
Terminals are adapting to merchant
needs and offering options such as
loyalty programs, tap processing or
remote acceptance. All these create
opportunities.
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