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Toward a more open world of payment solutions

By William C. Nichols manage classic payment terminals alongside next-
AEVI generation smart POS solutions. Some are running
separate estate management solutions for vendor-
n a perfect world, acquirers and ISOs would be specific hardware. Unifying an organization's estates in
able to offer merchants a rich portfolio of payment- one solution would enable them to be more flexible and
based digital services to enhance checkout services. simplify life for themselves and their customers.
I In today's world, they typically rely on a limited
toolset of card-acceptance terminals tightly bundled with In this step toward a more ideal world, acquirers can
monolithic payment applications. It's time to move toward adopt similar user interfaces across classic and smart
that more perfect world. POS devices, simplifying support and training. They can
also make it easier for merchants to integrate smart POS
Legacy systems essentially hard code traditional acquirers devices alongside classic terminals, so they can roll out
and ISOs to a minimal set of solutions and vendors. new capabilities without swapping out card acceptance
Meanwhile, they risk being outflanked by agile software devices. Additionally, acquirers and ISOs can reduce their
developers and VARs, a new breed of payment facilitators, reliance on one or two hardware vendors. If a vendor goes
and venture-backed insurgents eager to market their bust, or does not invest in innovation, the acquirer can
wares directly to merchants. Success in the fast-evolving swap in a new vendor to ensure continued viability. With
payments sphere requires a vendor-agnostic approach. the right vendor-agnostic platform, service providers will
Small and midsize (SMB) merchants need payment be faster to market with pre-certified devices.
solutions that enable them to grow their businesses in the Freedom, simplicity, openness
face of new economic challenges, compete with ecommerce
channels, and meet consumers' rapidly changing digital Vendor-agnostic management platforms will be a welcome
expectations. ISOs and acquirers must be able to meet relief for software developers, who today must support
those needs while becoming more agile themselves. separate development efforts for different hardware
brands to access a broader market. Smart POS devices
Traditionally, adding payment solutions to a portfolio accommodate a variety of apps, with fewer restrictions
requires investment in technology and skillsets, along than classic terminals. Developers will be able to write
with managing incompatible hardware and software. device-specific applications, freeing programmers to
Thus, many providers have relied on one or two hardware leverage their core competencies and quicken new product
vendors and trusted they could quickly adapt to changing creation.
market conditions and handle payment certification
requirements. However, as hardware suppliers dwindled Participating in a hardware-agnostic, open ecosystem,
in number, market leaders tended to maximize profit and developers will forge alliances with others and collaborate
restrain investment in innovation. The market stagnated to create larger business solution. Payment-focused
and merchants became increasingly dissatisfied. New developers will be able to align with developers focused
competitors, unburdened by legacy investments, spotted on back-office business management applications,
an opportunity and entered the market with innovative ecommerce specialists, loyalty specialists, etc.
solutions.
Everybody benefits
Flexibility, unity, simplicity
This new world of vendor-agnostic merchant payment
Acquirers and ISOs that work with a mix of existing and solutions represents a win-win for all involved. ISOs
future hardware vendors will adapt better to market and acquirers can cost-effectively deploy and manage a
changes and merchant demands. Today, SMB merchants richer array of merchant payment solutions. Developers
are fighting for survival as they contend with mandates in can access a broader market, spurring them to create
place to contain the Covid-19 pandemic. more innovative applications. And merchants can access
payment solutions that enable them to roll out new
Payments enterprises must respond by providing consumer digital services, more readily adapt to changing
merchants with digital services—such as online market circumstances, and become more efficient.
reservations and ordering curbside service—that do not
require merchant investment in standalone solutions.
New smart POS solutions can do exactly that, and more, William C. Nichols is vice president and GM Sales Americas, with AEVI. He
but service providers are not eager to build infrastructure has spent his career in fintech, with experience in strategic marketing,
to support added devices. Providers need a simplified, sales, operational leadership and new product initiatives in the pay-
vendor-agnostic payments infrastructure that can ably ments industry in the United States and internationally. Contact him at
response@aevi.com.
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