A Shrink­ing Win­dow of Op­por­tu­nity for ISOS

The same tech­nolo­gies that threaten ISOS can also aid their suc­cess, but it’s up to the ISOS to act fast enough to make the most of these op­por­tu­ni­ties.

ISO & Agent - - INSIDE 09/10.2017 - BY DAVID HEUN

Tech­nol­ogy moves fast. Whether it is a threat or a value to ISOS de­pends on how fast the ISOS re­spond to any new in­no­va­tion.

In­creas­ingly, the ac­quir­ing and ISO busi­ness has taken the view that ad­vances in tech­nol­ogy that orig­i­nally looked like threats in­stead made it eas­ier to sell more prod­ucts and sup­port more pay­ment types.

Still, the warn­ings never died down, and in­no­va­tion in ac­quir­ing is lag­ging be­hind pay­ments and fi­nan­cial tech­nol­ogy ad­vance­ments. Part of this has to do with the ac­quir­ers or in­de­pen­dent sales or­ga­ni­za­tions them­selves, specif­i­cally the in­di­vid­u­als lead­ing or work­ing for those com­pa­nies not mak­ing the full-blown ef­fort to be­come en­gaged in cur­rent tech­nol­ogy, said Juan Or­tiz, ex­ec­u­tive vice pres­i­dent of na­tional sales at Blue­pay Pro­cess­ing LLC.

It’s im­por­tant to change this mind­set, Or­tiz said dur­ing the an­nual Mid­west Ac-

quir­ers As­so­ci­a­tion con­fer­ence, be­cause “tech­nol­ogy hasn’t even started yet.”

“This is the time to get in­volved in some­thing good,” Or­tiz said. “You have to get on board with tech­nol­ogy and ob­tain as much knowl­edge as you can. You all have to be on so­cial me­dia and brand your­selves.”

Most im­por­tantly, Or­tiz added, if an em­ployee is not work­ing with a pro­ces­sor or ac­quirer that is in­volved with integrated pay­ments and open ap­pli­ca­tion pro­gram­ming in­ter­faces, it is vi­tal to find a pro­ces­sor that is.

It’s not far­fetched to think that an ac­quir­ing busi­ness caught too far be­hind the times could end up like Ko­dak, a com­pany that had knowl­edge of dig­i­tal cam­era ad­vance­ments but waited too long to pivot, Or­tiz said.

Ac­quir­ers and ISOS have two roads to travel on the cur­rent fin­tech land­scape — one to un­der­stand ad­vanc­ing tech­nol­ogy them­selves, the other to be able to ex­plain it and mo­ti­vate mer­chant clients to em­brace it, said Doug Small, na­tional sales direc­tor for ISOS at Cayan.

“We’ve in­vested a lot of re­sources and time in de­vel­op­ing our own tech­nol­ogy that is re­spond­ing to what mer­chants and busi­nesses need,” Small said. “We need to get those out­side of our com­pany to un­der­stand the tech­nol­ogy, and that’s a chal­lenge, es­pe­cially for smaller mer­chants.”

For the most part, large mer­chants know they need the tech­nol­ogy to ac­cept all pay­ments types, Small added, but it is also vi­tal for them to have up­dated back­of­fice and data record­ing ca­pa­bil­i­ties.

“Ev­ery year, ev­ery month, that type of tech­nol­ogy is mov­ing down mar­ket be­cause smaller mer­chants are also un­der­stand­ing that this tech­nol­ogy can save them time and also give their cus­tomers a good ex­pe­ri­ence,” Small said. “If their cus­tomers want Ap­ple Pay, then it does not take long to get that integrated.”

With ac­quir­ing and ISO busi­nesses fully en­gaged in pay­ments and re­tail in­dus­tries that are evolv­ing and emerg­ing, the in­ner work­ings of those ISOS must change as well.

Com­pa­nies must make “an­tic­i­pa­tion skills” a core com­pe­tency, as­sem­bling lead­ers who are adept at look­ing ahead and de­ter­min­ing where a com­pany must adapt, said Robert Dean, busi­ness con­sul­tant with Dean Learn­ing & Tal­ent Ad­vi­sors LLC.

“Statis­tics show that many ‘change’ projects fail, but in my ex­pe­ri­ence those that suc­ceed have a sus­tained busi­ness spon­sor to mo­ti­vate the project and a col­lab­o­ra­tive cul­ture,” Dean said.

Vir­tual col­lab­o­ra­tion, in which com­pa­nies use tech­nol­ogy to con­duct think­tank ses­sions through out­side net­works, is be­com­ing a vi­tal tool for those serv­ing clients in emerg­ing tech­nol­ogy mar­kets, Dean added.

Tech­nol­ogy will con­tinue to ad­vance at a rapid clip, Blue­pay’s Or­tiz said.

“It’s all about data now fu­el­ing ar­ti­fi­cial in­tel­li­gence,” he added. “Yet, peo­ple are still try­ing to sell one mer­chant at a time, but the way to do it is through integrated pay­ments, par­tic­u­larly busi­ness-to-busi­ness.”

It was un­heard of five years ago in the ac­quir­ing busi­ness to sell busi­ness-to-busi­ness pay­ments through credit card pro­cesses, Or­tiz said. Now, that is com­mon and prof­itable.

“It comes down to, if you con­trol the data you can con­trol the user ex­pe­ri­ence,” he added.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.