ETA Round Table Will Discuss Emergence of Micro Merchants and Aggregators

The payment industry is now seeing many new Payments Service Providers (PSP’s), also called Merchant Aggregators, entering the market to serve small “micro” merchants who have payment card transactions processing needs. This year Electronic Transactions Association’s Technology Committee is conducting a Round Table discussion at the ETA’s annual Strategic Leadership Forum.  The focus of the discussion will be on the Emergence of Micro Merchants and Aggregators, and the Effects on Traditional Payments Business Models.

In this session, participants from across the industry will discuss the impact of merchant aggregation on the traditional merchant acquiring business model, new rules for PSP’s and iPSP’s, and how acquirers and ISO’s will compete and/or cooperate with new market entrants.

Some of the questions that will be discussed include:

  • Is there an increased risk of data breaches since just about anyone can now become a merchant?  If so, how does the industry address this?
  • How solid is the strategy of Square and other similar companies who have made a quick entry into the marketplace?
  • How can an ISO offer a competitive solution to a PSP?
  • Is the recent announcement by Starbucks and Square seen as an opportunity or threat by ISO’s?

The Technology Committee is responsible for identifying current and emerging technology-related issues and assisting with communication of these issues to the membership. The committee provides information on technology trends and applications to ensure that the ETA is established as a valued information source for members and for the industry.  At the 2011 SLF, the Technology Committee conducted a Round Table discussion on Connected Commerce which addressed the merchant’s ability to connect with consumers whenever and wherever using mobile applications, loyalty, and social media to facilitate transactions.  During the 2011 ETA Annual Meeting, the Technology Committee held a Technology Showcase where technology companies exhibited the latest POS innovations in a hospitality setting.   In addition, the Technology Committee put on a Showcase during the 2012 ETA Annual Meeting where providers demonstrated innovative technology that enables merchants to sell more at the POS.

I am pleased to be part of the ETA’s Technology Committee.  I look forward to moderating this session along with other members of the Technology Committee.

Steve Chu, Regional Sales ManagerAbout the Author: As Regional Sales Manager for Layered Tech, Steve Chu (@stevendkchu) brings over 9 years of experience to the Payment and PCI Compliant Hosting industry.  His background prior to Layered Tech was with HMS/Micros Systems, which provides a point-of-sale solution for the hospitality industry, and also with global IT consulting firm, Sogeti Capgemini.

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