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ing. They may spend less, but they continue to spend, and Current industry landscape
much of that spending is tied to credit and debit cards.
As of March 2025, the payments industry continues to
But to reflect on my first point, since the first ISO was cre- evolve rapidly. Three issues that I focus on with my col-
ated, by Paul Green, this industry has been in a state of leagues:
change. From knuckle busters and phone authorizations 1. Artificial intelligence (AI) integration: AI is increas-
to biometrics and digital wallets, this is not an industry ingly being utilized to personalize payment experiences
that stands still. People are always trying new ways to get and enhance fraud detection capabilities. Advanced
things done faster, better and cheaper. algorithms analyze transaction patterns in real-time,
identifying potential risks and improving security mea-
Recently, I attended the Northeast Acquirers Association sures.
meeting where a contest was held pitting four innovators
against one and other, each of whom had built a new way 2. Integrated payments including SAAS fees and em-
of doing business that relied on artificial intelligence. I bedded payments for niche vertical markets: In my
was floored by the ingenuity of those who participated, opinion, being a generalist is no longer a methodology
especially the winner – a company that leverages AI to to financial freedom in the payments space. Become an
help small mom-and-pop shops operate as efficiently and expert in a category and own that vertical.
profitably as the big guys, dual pricing and all. This is not
to shade any of the other competitors, however. 3. Real-time payments: The adoption of real-time pay-
ment systems, such as the Federal Reserve's FedNow
There was a company that developed an AI-based order- service launched in July 2023, is transforming trans-
taking system to help understaffed and overwhelmed res- action processing by enabling instant fund transfers,
taurant owners. Another showcased a system that used AI thereby improving cash flow for businesses and con-
to help generate positive online reviews of businesses, and sumers alike.
yet another had developed a suite of AI-powered products,
including one that aims at tamping down merchant churn. I recently started a new ISO for a specific vertical, and
instant funding has proven to be very powerful – plus,
Looking ahead, I think AI and machine-learning tools very profitable as we can charge an additional 1.50 per-
are the latest pathway to success. We’re going to see more cent for this service. Cash is king, and giving merchants
agents, ISOs and other payment services companies lever- access to immediate funding is very powerful—versus
aging AI and machine learning tools to keep their custom- waiting until the next day.
ers happy, and the customers of those companies happy.
Impact of the Trump Administration
The plain fact is that in this business, as in many others, The second term of President Donald Trump has intro-
those that resist the inevitable march of change in the mar- duced several policy shifts affecting the payments indus-
ket risk being left behind. try. Without getting into a political discussion (which I
Jeff Shavitz won’t), I will say that the uncertainty of the markets which
Shavitz Group has affected the stock markets with ups and downs has
adversely affected many of my merchants' monthly sales
Having spent 25+ years in the payments industry and hav- – which, in turn, affects the profitability of our monthly
ing started and sold a few ISOs, I remember saying to my- residuals.
self in 2008 and then again in 2015 that the payments in-
dustry is over and, “Lets sell our company as it’s a race to Cryptocurrency and stablecoin policies: The adminis-
zero, while we can still earn a good multiple on the port- tration has shown a supportive stance toward cryptocur-
folio." Shame on me. I was wrong, as our industry contin- rencies and stablecoins, encouraging traditional financial
ues to reinvent itself with new offerings and services for institutions to explore these digital assets. Major banks
merchants and new opportunities to earn money. and fintech companies are entering the stablecoin mar-
ket, aiming to enhance cross-border payment efficiency.
The payment processing industry has consistently dem- Although I am not very versed in this space, I would love
onstrated resilience and adaptability in the face of various to learn from others who have taken a real position in this
challenges, including economic downturns, technological category.
disruptions, data breaches, significant lawsuits and strin-
gent regulations. By focusing on innovation, niche marketing and regulato-
ry awareness, payments enterprises can continue to adapt
This adaptability stems from a commitment to innovation, and thrive amid the industry's evolving landscape. With
a deep understanding of consumer behavior, and proac- all the technology that continues to enter our space, I still
tive engagement with regulatory changes and becoming preach that great payments salespeople will always have a
an expert in payment processing to share with a merchant great business for the years to come.
how and why your solution will benefit their business.
Continue to do the simple things that differentiate you
from the competition.
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