ISO versus Payment Facilitator: Who Survives?

If you are an independent sales organization, you might be able to take advantage of becoming a payment facilitator. There are several factors speaking in favor of such a transition. Many present-day payment facilitators benefit from combining merchant services and gateway services in one offering. In this way they can receive both gateway fees and merchant services fees, which are several times higher. Another phenomenon witnessed at the modern-time market is that payment facilitators choose to integrate with a single processor or acquirer support only merchant accounts, issued by this particular acquirer. This allows them to standardize the key processes related to sub-merchant life-cycle, such as onboarding, reconciliation and others. As a result, independent sales organizations (ISO), that focused only on merchant services, and partnered with multiple acquirers (with different requirements and different gateway integrations), are giving way to payment facilitators.

You can find a more detailed explanation of the situation in the respective article on Paylosophy.

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