The margin squeeze
Merchant discount rates are under pressure from regulation, low-cost instant payments and new entrants. A provider that only processes card or QR transactions is easy to replace, and it earns less every year.
From transaction to relationship
Providers that add business accounts, fast settlements, reconciliation, payroll, invoicing, working capital and business tools turn a low-margin transaction into a lasting relationship. Merchants stay because the platform runs part of their business, not only their payments.
New revenue, richer data
Revenue then comes from subscriptions, float, lending and value-added services as well as transaction fees. The transaction data the platform collects becomes the foundation for merchant credit, often the most valuable service a small business can receive.