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Education

with fintechs than to compete with them. So while I
have separated innovative fintechs from the big banks,
there isn't a huge separation because said big banks are
embracing fintechs wholeheartedly, realizing that if they It's difficult to switch payment
don't, they'll provide too big of an opportunity for more providers to save on rates or get
market share to go to these emerging fintech players. better customer service when your
Look at this objectively
line of credit, business loans and
While it might be a hard pill to swallow, it's clear the business bank accounts are tied to
industry has changed. This means that if your strategy
today is still leveraged on selling basic bankcard services the company that's providing your
tied to stand-alone terminals and leading in with rate merchant processing.
savings (which includes cash discounting), you are likely
to run into trouble. Matt Bruno, vice president of strategic
partnerships at Payment Logistics and Green Sheet MLS
Forum member mbruno, spoke to this in the forum.
Here are some ideas on how to do that:
"As with everything, it comes down to value – if the
merchant believes there's value, you will board accounts," • Begin by identifying some verticals of interest to
he wrote. "There are always going to be accounts that you.
you can pick up with lower rates, better service and free • Next, conduct research on said verticals in terms of
hardware. Effectively that model morphed into cash how financial services are being deployed currently,
discount, really. including payments, lending, credit, insurance, risk,
banking, and regulatory compliance.
"The crux of this question is the hardware – specifically,
are we talking basic EMV devices or a POS system? For • Continue by examining what's wrong with said
basic EMV devices as the primary hardware – I don't think delivery? What's chaotic? Where are the leaks?
this model is sustainable. If however POS systems are the Where are the challenges? Where is the fraud?
free hardware – it's possible to do a lot more than survive. Where are the high costs? Where is there room
The better the system, the better the new person in the for innovation? What's being completely ignored?
industry can fair." What's not being addressed?

It's far too easy for a competitor selling some sort of • Now start researching innovative fintechs in the
integrated package from a big bank or innovative fintech market that are building out innovative financial
to steal a merchant who is using your stand-alone terminal. services that might be addressing some or all of said
The reason is that all they have to do is combine more challenges.
aspects of the merchant’s business into an integrated/
centralized solution, stacking it with other valuable • From there, reach out to said fintech companies to
financial services. either form a partnership or take it a step further
and seek to work for them directly as an employee
Big banks stack such valuable financial services as bank whose earning and deductions are reported on a W-2
accounts, lines of credit, loans and more into their offering. form. A large number of these companies are raising
And going forward, disruptive fintechs are likely to stack significant equity rounds and have the capital to
other financial services into their offering as well, such invest into quality direct professional salespeople
as business loans, credit cards, insurance, compliance that can help take their products to market.
solutions and bank accounts—all in one integrated
solution package. The industry has changed. This is not the industry of your
grandfather or your father anymore. This has become a
What to do going forward millennial and Gen Z-driven industry powered by digital,
integrated and embedded solutions. Now is the time to
So what should you do going forward to—as Marc pivot because, as H.G. Wells said, either you will adapt or
Beauchamp, former Street SmartsSM author and founder perish.
of the Bankcard Life community, would say—"survive and
thrive in the merchant services industry"? Well, I would
recommend that you shift from thinking like a traditional John Tucker is U.S. enterprise sales director for TreviPay (www.trevipay.
bankcard rep and start thinking like a fintech rep. com) and has over 14 years of B2B sales experience in commercial
finance. Tucker is an MBA graduate and holder of three bachelor's
degrees in accounting, business management and journalism. To con-
nect with him, feel free to send him a connection invite via LinkedIn at
www.linkedin.com/in/johntucker99/.
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