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In the face of a looming recession in the first half of 2023, I We plan to continue focusing our efforts on initiatives that
see small to medium-sized ISOs under increasing pressure move the needle for the company, including international
to change up their strategies and get help to address these expansion, new vertical growth and other strategic
challenges. projects.
2. The only new approach that I have seen that truly 2. The next evolution of integrated payments is unified
improves the small to medium-sized ISOs situation with a global commerce, connecting both card-present and card-
revolutionary approach is by a company called Plink. (Full not-present processing to deliver a truly omnichannel
disclosure – I advise Plink on strategies.). Plink is different solution. It's our goal to provide a consistent payment
because: experience no matter where or how you're paying around
1. Plink is a fintech, but the company is run by the world. There are a number of powerful technologies
experienced managers with a long history of working that work together to enable this type of seamless
well with ISOs and agents. experience.
2. Plink effectively doubles the residual stream ISOs 3. Overall, there has been a lot of progress made over the
receive by adding a second residual stream from past few years as new technological solutions have been
issuing banks. developed to protect data and stop fraud, but there is still
3. Plink has a payday for everyone: the merchant, the room for the industry to improve as new threats arise.
ISO and its agents, the acquiring bank and the issuing At Shift4, all of our transactions use PCI-validated P2PE,
bank and, of course, Plink. All parties win. which offers robust security against data breaches. This
4. Plink is actively seeking new partners in the ISO is combined with our advanced tokenization technology
and EMV to deliver layered security protection for our
space and the early adopters will get the biggest customers. We also now use AI-based fraud detection
returns. tools to proactively detect and protect against bad actors.
3. Sorry, I don't think I have anything for this question. 4. Social media provides a powerful two-way
communication tool for us to stay connected with our
4. I plan to more effectively be involved in social media in customers, partners and employees. We are active on
2023. all the major platforms, including Twitter, Facebook,
Instagram and LinkedIn. We adjust our strategy for each
5. I believe the way merchant owners buy services is a platform based on the audience. For example, LinkedIn
generational change. Younger owners buy differently, is particularly well suited for interacting with employees
and they don't have much tolerance for anything other and partners, while the other platforms offer a great way
than immediate turn on of services with a seamless, to obtain real-time feedback from customers.
frictionless operation. However, the fintechs that provide
this type of service are overpriced and provide spotty, if 5. I think that there's pretty clear evidence of consolidation
not horrendous customer service. across the industry as the payments and POS industries
have converged. That transformation has certainly
ISOs will continue to have opportunities to sell merchants impacted the ISO/MLS community, and the agents that
where these conditions persist. The issue for ISOs is that will succeed in this new environment are those who
the cost of fielding a sales force is too high and salespeople embrace integrated payments and evolve into value-added
today want an immediate payout—they don't see the resellers.
benefit in building a long-term payout from a residual.
Allen Kopelman
There are too many ISOs chasing too few really productive Nationwide Payment Systems
sales agents. Add to that the aging of the ISO and agent
community, and you have a picture that is going to 1. We are pleased with our growth and direction in 2022
change. I see the change accelerating in 2023. It seems to and are moving in the same direction this year. More
me there are a lot of small to medium ISO portfolios and companies will become payfacs or develop payfac-style
businesses that will go on the market in 2023 as owners boarding to create a better experience for merchants/
who are ready to either retire or monetize the portfolio business owners. There is plenty of room for agents/
they have built. salespeople, but the number of people who want a self-
service experience is increasing. Also, we will see more
Michael Isaacman software companies partner with payment companies and
Shift4 Payments fintech to have integrated payments.
1. We've accomplished a lot in 2022—including the launch 2. There will be many new technologies in 2023 and
of SkyTab POS, processing our first European transactions, alternative payment types that will emerge. Time will tell
expansion into a number of new verticals, and significant how well they will work: real-time payments, pay-by-bank
progress on many strategic initiatives that have positioned and other new wallets. The lawsuits against Apple might
us well going into an uncertain economic environment.
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