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Insights and Expertise

StreetSmarts SM

Big tech versus humans – competing

with the internet

By Allen Kopelman new digital world. MLSs who are up to the challenge can
Nationwide Payment Systems Inc. begin by thinking about why merchants are attracted
to big, impersonal technology platforms. Precisely what
redit card terminals were a novelty in 2001 does big tech have to offer?
when my partner Dave and I established our
ISO business. Most merchants, when asked Big tech doesn't have salespeople, which for many
C who processed their payments, would say, merchants is a welcome relief. Pricing, rather than being
"My bank." This inspired us to name our first website a song and dance, is clearly posted on a website, without
"npsbank.com." We partnered with Imperial Bank of drama and with full transparency.
California, later acquired by Comerica, in a great relation-
ship that lasted for many years. Most business owners are not that savvy and don't take
the time to read terms and conditions or fee schedules,
Fast forward to 2024 and fintechs are the talk of the which can be a problem. Merchants who don't understand
town, dominating discussions at the Southeast Acquirers a processor's rules can be shut down or placed on the
Association conference, which Dave and I have faithfully MATCH list. Who do you think they blame when that
attended since its first show in 2001. happens? MLSs, of course.

Last year and this year, I stood up at breakout sessions Big tech appeals to younger people who prefer text and
and said our primary competition is not in this room email to phones. Youngsters love the instant approvals
or down the hall but on the internet. Fintechs rule our that big tech offers as a Merchant of Record that assumes
industry, I said, and attract younger business owners and risk. They don't realize that things can change in a hurry
others who have been burned by unscrupulous merchant when their merchants begin to process $250,000 a month
level salespeople (MLSs). or more. Big tech will ask a merchant to approve changes
to terms of service or provide more information to risk
The evolving marketplace inspired Dave and me to put and underwriting departments. Ignoring these requests
the key word "payments" in our new domain name, or failing to provide additional information can lead to
"nationwidepaymentsystems.com." Payments is more of logistical delays, frozen funds and closed accounts.
a buzzword these days than merchant services or even Power to the people
credit card processing. Today, it's just payments and
fintech, which stands for financial technology. Our tagline, "payments powered by people" reflects
Big tech rules our belief that humans are more valuable than AIs,
algorithms and big tech. When merchants say they don't
You may ask how MLSs can adapt to this new market care about having a toll free hotline, take it with a grain of
and compete against the internet. Not everyone has been salt. Believe me, when something breaks, they will want
willing to refresh old business models and be part of the humans answering their calls.

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