This is a transcription of an interview between
PaymentsJournal and Nicky Koopman, Senior Vice President of Content & Value
Added Services at AEVI, at the Money 20/20 event:

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PaymentsJournal

Welcome to the PaymentsJournal podcast. I’m your host Ryan
Mac, and today’s episode is a conversation that I had with Nicky Koopman, the
SVP of Content and Value Added Services at AEVI, at Money20/20. Now during this
conversation, we talked about the traditional ISO model being outdated, and how
ISOs can become a merchant solution provider, as well as how AV was innovating
in this space. So without any further delay, let’s start the show.

So, Nicky, thank you so much for joining me on today’s episode. So, looking at the acquiring market in 2019, we really see two trends. The first is the rise of ISVs offering payment services and the second is the announcement of the so called “industry mega mergers.” Therefore, the first question that I have is, you know, is the traditional acquirer/bank ISO model outdated?

Nicky Koopman

I understand where you come from Ryan. I mean more and more
payment intermediaries, such as Amazon or Square, Stripe, or the big tax like
Apple Pay or Google Play, are entering and they’re all fighting over merchant
dominance, especially now with the digital and physical world truly converging.
And looking at providing services to global big players, consolidation makes a
lot of sense as acquirers can play the economies of scale game, consolidating a
bigger payments volume on to their legacy pipes, while at the same time
expanding their global footprint product offering. Nevertheless, this is a
numbers game that does not change the position of the acquirers. But to answer
your question, from our perspective, both acquirers and ISOs have the same, if
not more, relevancy for 2020. The reason is simple. We are living in a world of
abundance, with many absolutions being available, that’s traditional App Store.
And there’s so much choice that it is hard to differentiate between the good
ones, the bad ones, and the actual relevant ones for you. And there is a need
for professional solution curation, especially in the SMB space. And this is
where both acquirers, as the enablers of such solutions, and the ISOs, as the
consulting partners, especially for those, of which there are still many,
non-tech savvy merchants. Nevertheless, both acquirers and ISOs have to realize
that the merchant mindset has changed and merchants are looking for bus...