For a long time, Independent Sales Organizations (ISOs) and Independent Software Vendors (ISVs) have worked in symbiosis, providing individual merchants with the solutions they need to streamline business operations and simultaneously a great experience for their customers.
This ISO and ISV ecosystem has thrived in the U.S. for many years, supporting merchants in delivering a great service to consumers. However, this state of affairs – stable for so long – is starting to shift, for a number of reasons.
The value of credit and debit card transactions is fast-overtaking cash purchases not just in the U.S., but around the world. According to Paysafe’s research for its recent whitepaper, Lost in Transaction, consumer card payments globally surpassed cash for the first time, registering USD $23.1 trillion in value. In the US, card payments now represent 40% of all consumer spending, while cash accounts for just 10%.
In addition, the way in which card transactions are made in the US is evolving. Over the last few years, the country has migrated from traditional swipe and sign cards to the more secure EMV standard, demanding changes to the hard payments infrastructure in-store. According to Visa, as of December 2017, approximately six in ten stores in the U.S. now accept EMV cards.
Other changes, such as a generational shift to eWallets and other alternative payments, combined with the rise in online retail, are also driving a transformation of merchants’ needs across the U.S.
As a result of merchants’ evolving demands, organizations on both sides of the fence are changing their own offerings. More and more, we’re seeing ISOs offering services that are traditionally the remit of ISVs, as they seek to harness the benefits of new revenue streams and build stronger relationships with merchants. Likewise, a growing number of ISVs are starting to offer a wider range of services around their software, taking on the aspects of an ISO, as they seek to expand their offer and grow their business.
While the benefits of converging are clear, it does present challenges for both ISOs and ISVs that can hinder the development of their service offering to merchant customers, especially as they navigate technologies and payment subsectors that the business is unfamiliar with. Both groups need someone that they can turn to for support in navigating this increasingly complex marketplace.
As we explain in our new whitepaper, The ISO/ISV Convergence: Do Payments Systems Hold the Key to Helping Both Sides Thrive?, the right payment partners are the key to navigating this complex new world. Providers that understand the requirements of ISOs and ISVs, such as Paysafe, can provide both the insight and guidance to evolve in order to meet their customers’ changing needs.
In doing so, we can help everyone in the ecosystem thrive in this fast-moving landscape.
To learn about the ISO/ISV convergence, and how payment experts like Paysafe can help your ISO or ISV prepare to meet merchants’ changing needs, download and read our latest whitepaper, The ISO/ISV Convergence: Do Payments Systems Hold the Key to Helping Both Sides Thrive?
Download the full whitepaper here.
To discover more about the convergence of ISOs and ISVs, read our blogs: How can payment partners support ISOs and ISVs in a changing market? and The ISO/ISV convergence: Successful partnerships in action
To discover what support Paysafe can provide ISOs and ISVs, visit the website.