With the payment ecosystem going on enlarging and becoming more complex, the merchant processing industry is growing as a part of it.
Merchant services have to do with financial services for businesses. Usually, they refer to processing services that enable merchants to accept payment transactions via credit/debit cards, and also mobile payments. Merchant services also refer to payment gateways, loyalty programs, gift cards, online transactions, and more.
Given the payment ecosystem is becoming more and more digital, merchant service providers, known as MSPs, are expected to grow successfully. Merchant service providers are called to sell payment processing services to merchants on behalf of acquirers and processors. However, they shouldn’t be viewed as actual banks.
Also, MSPs can sell and lease payment terminals. This is typically being done regionally by using boots-on-the-ground sales strategies. Unlike banks that cannot spend time on selling their products to millions of merchants, MSPs can do this. Besides, MSPs provide customer service and act as the main point of contact for merchants.
MSPs are part of the large payments ecosystem. Today, the latter includes merchants, processors, card networks, acquirers, and more. To open a reliable merchant account, consider turning to emerchantbroker.com. EMB is voted the #1 high risk processor in the US and has an A+ rating with the BBB. EMB is one of Inc 500’s fastest Growing Companies of 2016 and is rated “A” by Card Payment Options.
In the upcoming years, Independent Sales Organizations and Merchant Service Providers are expected to struggle some changes. Thanks to the payment facilitator model, these changes will be pushed through new technology, alternative pricing plans, and business models that have emerged recently. The facilitators bring their contribution to the payments ecosystem, acting as integrated software vendors and value-added resellers.
According to Marc Abbey, principal at First Annapolis Consulting Inc., this is a new distribution model that offers lots of advantages and the potential to bring a change to the market. It will be difficult for ISOs to go on acting the way they did in the past. Companies will need to create niche businesses focused on specific markets.