Software developers evaluating a payments company as a potential partner won’t find any shortage of advice on how to make your decision. Industry thought leaders will tell you to thoroughly assess payment features and ensure the payment technology is secure and compliant with the Payment Card Industry Data Security Standard (PCI DSS). Another priority is ensuring the company charges reasonable fees to your users – and offers fair residuals to you.
It’s all great advice, but there is one more factor to consider that will impact your relationship with a payments partner: Size. See how the size of a payments company can impact these four areas:
1. Payment performance and reliability
Large credit card processing companies have long histories, and, in many cases, they have pre-cloud era technology. Newer, born-in-the-cloud platforms leverage microservices architecture that enables your partners’ development team to update code and add new features without impacting the entire solution, which means more confidence in their ability to deliver uptime along with scalability. Modern technology is also designed to enable the payment methods that consumers demand today – and payment companies with older technology may be scrambling to catch up.
Take a long look at the technology your potential partner uses and make sure it can provide your users with the features they need today and a plan for delivering new functionality in the future.
Larger payments companies have complex organizations, boards and, often, stockholders, which expands the list of stakeholders in decisions. Furthermore, bear in mind that those decisions aren’t limited to the technology the company uses – it also impacts leadership, branding, and sales and channel strategies.
Smaller payment companies are more flexible, taking advantage of opportunities more quickly, such as responding to the sudden increase in demand for contactless or touchless QR code payments due to the pandemic.
3. Customer support
The quality of support that your payments partner provides to your users can reflect positively – or negatively – on your brand.
Smaller companies often have the ability to provide personalized service, unlike larger companies that manage a large customer base with chatbots and call centers that may make a customer feel only like a number. In fact, working with a smaller payments company with a commitment to providing excellent customer service can help you differentiate your business from competitors who can’t promise the same quality of support.
4. Channel relationships
A potential casualty of a payments merger or acquisition can be a company’s channel program. It’s not hard to understand – a large, public company has different priorities, often working to please stockholders rather than partners.
However, ISVs and software developers need technical support to integrate their software with the payments company’s and need to know their resellers are receiving the support they need to be successful.
Also, you may benefit from a partner who offers white label solutions, which could enable you and your partners to sell payment services under your brand.
When you’re considering a new partnership, you may first be drawn to well-known names in the industry. However, after performing your due diligence, you’ll likely find the best partner for your business is a small payments company.
Contact us to see how North American Bancard compares in size – and in technology, payment capabilities, customer service and channel commitment – with other companies in our space.