Changes in the way the payment services industry works are creating challenges for ISOs and affiliates who haven't kept current. In addition to the emergence of companies like PayPal and Square Inc., which offer convenient payment processing services to both individual clients as well as businesses, new payment technologies have become the norm. This threatens to replace traditional payment methods, creating problems for ISOs including reduced revenue, lost opportunity and lower rates of merchant retention.
In years past, the payment services industry was largely focused on helping clients control costs. Today it is much more about aiding clients in choosing the right payment processing technologies. Credit and debit card payments have become so widespread that a business is considered behind the times if they're unable to process them, but there's yet another revolution lurking in the near future: mobile payment technologies. The future is now, and keeping up is essential to your sustained success.
Staying Current in the World of Payment Services
This two-fold approach to staying on top of the rapidly changing payment services industry can keep you competitive.
• Embrace technology. The best thing you can do is understand new payment technologies inside and out. This positions ISOs to explain the relative merits and drawbacks of all the available options to their clients, which industry insiders cite as a key way in which ISOs can increase their value propositions for their clients.
• Understand the psychology of the end consumer. Keep in mind that different demographics prefer different payment methods. For example, it is still common for older consumers to pay with cash and write checks, whether it's for a week's worth of groceries, an electric bill, or a new sofa or television. On the other hand, younger consumers tend to favor electronic forms of payment, including both debit and credit cards as well as mobile payments and payments made through third-party online money transfer services like PayPal.
In order to appeal to the broadest possible range of consumers, it is vital for merchants to accept a range of payment methods. As an ISO, you'll benefit from this too -- the more payment options your clients offer, the more opportunities you'll have to cash in!
CrossCheck offers a wide range of payment services to ISOs who are looking to offer updated transaction processing options to their clients, including multiple check services and remote deposit capturing. To learn more about CrossCheck's agent affiliate program and find new ways keep your skill set current in a rapidly changing industry, please click here for more information.