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of Content & Value Added Services at AEVI, at the Money 20/20 event: PaymentsJournalIs the Traditional ISO Model Outdated?PaymentsJournal Is the Traditional ISO Model Outdated?PaymentsJournaljQuery(document).ready(function ($){var settings_ap37871731 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"37871731",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_82857_4",settings_ap37871731); }catch(err){ console.warn("cannot init player", err); } }); 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 Now during this conversation, we talked about the traditional ISO model being outdated, and how ISOs can become a merchant solution provider, as well as how AV was innovating in this space.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 Therefore, the first question that I have is, you know, is the traditional acquirer/bank ISO model outdated?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...