With so much at stake \u2014 not the least of which is the possibility of having to integrate your software with another payment processing solution \u2014 it\u2019s essential to weigh all of your options carefully and make the best decision for your ISV. Ask and answer these five questions following a merger or acquisition:<\/p>\n
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- Will the merger or acquisition change the features of the solutions you provide to your customers?<\/em><\/li>\n<\/ol>\n
One reason payments M&A activity occurs is when one or both companies want additional technology or resources. Understand the advantages this could offer.<\/p>\n
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- Will the headquarters of the organization change? <\/em><\/li>\n<\/ol>\n
Your U.S.-based payment processing partner could now be headquartered in a different country. Will that have an impact on your business?<\/p>\n
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- Will the new organization handle customer service in the same way? <\/em><\/li>\n<\/ol>\n
Will you and your customers still receive personalized attention from account reps or will the new enterprise change processes? Will you lose business relationships that are valuable to your business?<\/p>\n
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- Will prices change?<\/em><\/li>\n<\/ol>\n
Payment processing companies can have varied fee structures. Will your customers\u2019 invoices reflect the same types of fees \u2014 and the same prices?<\/p>\n
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- What are your other options?<\/em><\/li>\n<\/ol>\n
Even if you aren\u2019t convinced that the merger\u2019s pros outweigh the cons for your ISV, are your alternatives better?<\/p>\n
When Payment Companies Expand Their Offerings through Acquisitions<\/strong><\/p>\n
In addition to consolidation among payment processors, payment companies may also choose to acquire a company that expands its offerings, for example, a payments company may acquire an e-commerce solution that merchants can use to sell online.<\/p>\n
This type of acquisition may benefit some partners \u2014 it can enable them to offer a broader range of solutions to their customer. But, it can also result in a payments company that\u2019s now competing with its ISV partners, selling the same type of solution that they sell.<\/p>\n
Although there\u2019s no way to guarantee you\u2019ll never be in this position, making smart choices when you enter into partnerships can help you avoid it. ISVs routinely evaluate potential payment processing partners for their solutions, customer service, expertise in their clients\u2019 industry, and competitive, transparent pricing. But there\u2019s one more thing to add to that list \u2014 their commitment to their ISV community. You want to form partnerships with companies that aren\u2019t only interested in their own growth, but that are also committed to protecting the relationships they\u2019ve built that helped them get where they are.<\/p>\n
The terms of a payment processor\u2019s ISV partner program and the resources that they\u2019ve dedicated to it, such as dedicated account representatives, integration resources, and sales and customer service assistance, can provide some indication of a payment company\u2019s level of commitment to its ISV partners.<\/p>\n
The onus is also on you to stay informed about industry news and rumors of M&A activity. Also, before entering into a partnership, you should familiarize yourself with the company\u2019s past and everything you can about where they\u2019re headed in the future.<\/p>\n
Forming a partnership with a payment processor and integrating payments with your solution represents a significant investment of time and potential changes to your client\u2019s user experience. Changing payment processing partners is not something you want to repeat often. Choose wisely.<\/p>\n\n\n
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With business activities in 50 markets and 150+ currencies around the world, EVO is among the largest fully integrated merchant acquirers and payment processors in the world.<\/p>\n
- What are your other options?<\/em><\/li>\n<\/ol>\n
- Will prices change?<\/em><\/li>\n<\/ol>\n
- Will the new organization handle customer service in the same way? <\/em><\/li>\n<\/ol>\n
- Will the headquarters of the organization change? <\/em><\/li>\n<\/ol>\n