Merchant Sales Podcast

New Payment Trends Reshaping the Industry

31 min

This episode delves into the emerging trend of payment orchestration, explaining how it's commoditizing traditional processors and gateways by enabling flexible transaction routing and token management. It highlights the significant shift as companies like Stripe and Square open up to competitive ISO/ISV partnerships, challenging existing industry players. The discussion also covers broader payment trends, including the surge in mobile wallet usage, growing merchant acceptance of cryptocurrency, and SWIFT's entry into retail cross-border payments.

Summarized by Podsumo

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✨ Key Takeaways

1

Payment orchestration platforms are redefining the industry by allowing merchants and ISVs to easily switch between multiple processors and gateways, effectively commoditizing these services and enabling greater control over payment tokens.
2

Stripe and Square are becoming significant competitive forces, with Stripe offering highly competitive payment monetization deals for ISVs and Square launching an ISO program, signaling a major shift in partnership opportunities and competitive dynamics.
3

The traditional integrated payments model is evolving as software companies seek less reliance on single-point integrations, moving towards orchestration platforms that provide access to diverse payment providers and methods.
4

Mobile wallet adoption, particularly Apple Pay, has seen a substantial surge in physical stores, with consumers increasingly funding purchases through digital balances, and cash usage declining significantly.
5

Cryptocurrency acceptance among merchants is growing, with nearly 40% already accepting it and 84% expecting it to be a common payment method within five years, though ease of use remains a barrier.

💬 Notable Quotes

"The idea of payment orchestration is the idea that both the processor and the gateway are becoming to some extent commoditized."
"The fact that Stripe, which has this extremely unique and competitive technology solution, is willing to do a deal where there's payment monetization involved at a very competitive level. That's very interesting. That is a game changer, right?"
"I think there is a very common misconception that the speed of technology change is the speed of societal and cultural change. And that's just not true, right?"