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Since those early days, the industry has undergone sig- tory landscape. Thus, the industry has become more so-
nificant changes. Nowadays, any business owner can phisticated and better equipped to address the emerg-
easily start accepting payments on their iPhone within ing needs of merchants and their customers.
minutes. Moreover, most merchants have become cau-
tious due to past experiences with deceitful pricing 4a. Price only matters in the absence of value: While com-
strategies. In the past, it seemed like anyone could en- petitive pricing is important, it should not be the sole
ter the payments business with minimal background focus. Instead, prioritize delivering value to your mer-
knowledge and the promise of lower pricing. chants. Understand their unique needs and challenges,
and offer solutions that address those pain points.
However, those days are long gone. Today, new entrants
in the industry need to differentiate themselves by pro- By providing value-added services, exceptional support
viding value through technology. Success in payments and innovative solutions, you can differentiate your-
now relies on offering innovative solutions and leverag- self from competitors and build long-term relationships
ing technology to enhance the payment experience for with your merchants.
merchants and their customers.
4b. Make it a "make sense deal": A good deal should
2. The most significant development that influenced the make sense for all parties involved. Consider not only
direction of our company was the growing adoption of what makes sense for your own business, but also what
integrated payment solutions. Early on, we recognized aligns with the goals and interests of your merchants,
a common frustration among our merchants was the stakeholders and your acquirers. Strive for mutually
lack of integration between the systems involved in the beneficial solutions that create win-win situations for
typical revenue cycle. From credit card terminals to pay- everyone in the ecosystem. This approach fosters trust,
ment gateways, online shopping carts, accounting soft- collaboration, and sustainable growth for all involved.
ware, general ledgers, and banks where deposits were
received—none of these systems talked to each other, Allen Kopelman
which created labor bottlenecks for the merchants we Nationwide Payment Systems Inc.
supported.
1. I started in this business working for a local ISO. Af-
ter a year or so, I was given a copy of The Green Sheet.
This led us to develop Biller Genie, a tool that seamlessly This really opened my eyes; I wasn't making the mon-
connects these disparate systems, automating reconcili-
ation and streamlining back-office tasks. By integrating ey I thought I should make, and business owners were
asking for different things that this company did not
these, we've been able to alleviate the burden of manu-
al work and provide merchants with a more efficient, offer. So, in January of 2001, I co-founded Nationwide
Payment Systems with my business partner, David Bur-
streamlined payments experience.
ney. The company we worked for laughed at us, told us
Our primary focus lies in assisting other acquirers in we would fail and we'd be out of business in less than
leveraging these tools to acquire more high-margin and a year. I was unhappy working for them, so I left my
residuals and moved on. It was either that or returning
high-volume merchants. By offering integrated payment
solutions, we enable acquirers to attract and serve a to the restaurant business where I'd worked previously.
broader range of merchants, ultimately driving growth
and profitability. Back then, paperwork was hard copies, Polaroid pic-
tures, FedEx apps overnight, and downloading over a
phone line. Three-tier pricing was the norm. A couple of
3. On one hand, this increased scrutiny has played a cru- years later, a merchant showed us a statement with in-
cial role in exposing and weeding out bad actors who
employed deceitful tactics to exploit unsuspecting busi- terchange pass thru pricing. We hadn't seen that before,
and we started going after larger companies with that
ness owners. It has helped protect merchants from en-
tering into unfavorable commitments and has brought pricing, which was very successful. Not many people
were using that pricing model at the time.
greater transparency to the industry. This increased
vigilance has led to a more trustworthy, reliable market- Leasing was big. We also changed from the norm of
place for merchants and their customers.
48-month leases and offered 12-month leases, which
On the other hand, the heightened scrutiny has also pre- were higher monthly, and merchants liked the option—
sented challenges for industry participants. Compliance also no more calls about taxes and hassles with people
who would stop paying or go out of business. Those
with regulatory requirements and meeting expectations
of various stakeholders require additional resources, leases would also end; no paperwork was needed. So
that was a game changer for us.
time and effort. However, these challenges have pushed
the industry to become more resilient and adaptive.
Entering the business now is a lot different: free ma-
chines, free POS, upfront bonuses and buyouts, Cash
Market participants have had to enhance their systems, discount/dual pricing/surcharge, etc. I've created ways
processes and technology to meet the evolving regula-

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