News

Software vendors reshaping merchant services distribution

New research discusses how acquirers and ISOs should be responding to an integrated payments revolution in the US.

January 8, 2015

Developers of integrated payments software have broadened the availability of sophisticated processing solutions across industry verticals. As a result, firms that would never before have been considered payments companies are now earning substantial payments revenue, according to Mercator Advisory Group.

Leading merchant acquirers have already set the course for their integrated payment strategies, but independent sales organizations are looking increasingly vulnerable to this new competition.

A new research note from Mercator, "Merchant Acquiring in 2014: Integration, Integration, Integration," discusses how acquirers and ISOs should be responding to the integrated payments revolution in the United States.

"Integrated point-of-sale solutions are expanding the market for merchant services in the United States," said Michael Misasi, senior analyst, credit advisory service at Mercator, and the author of the research note. "These solutions help small businesses justify the cost of payment acceptance and are facilitating card acceptance in industries with relatively low rates of bankcard acceptance. The firms that successfully manage the transition to integrated payment applications will be rewarded with larger payment volumes and more profitable business."

One of five exhibits in the 12-page research note:

Companies mentioned in the research note include: APT; Bank of America Merchant Services; Blackbaud; CardConnect; Chase Paymentech; Century Payments; Clover; Cynergy Data; Elavon; Element Payment Technologies; EVO Payments International; First Data; Global Payments; Heartland; Leaf; Mercury Payments; MCS; Merchant Warehouse; Micros; NCR; Oracle; PayPros; ProPay; Priority Payments; Phreesia; TouchNet; TransFirst; TSYS; Vantiv; WorldPay; and Xpient.