Independent Sales Organizations (ISOs) are evolving their business models as merchants demand more than just basic services. Traditionally, these organizations focused on acquiring accounts through direct sales efforts, such as swapping out payment terminals and negotiating pricing. However, as merchant expectations shift, ISOs are now compelled to position themselves as strategic partners, providing valuable guidance and tailored solutions.
In an interview with PYMNTS, Jonathan Aguilar, Associate Vice President of Partner Experience at Maverick Payments, emphasized the importance of this transformation. He noted that the success of ISOs will depend on their ability to move beyond a commodity-focused mindset and instead embrace a service-oriented approach. “The modern ISO is solution-oriented, tech-enabled, and focused on delivering value beyond price,” Aguilar stated. This transition requires ISOs to adapt their sales strategies, moving away from hardware-centric models to integrated solutions that foster business growth.
To effectively modernize, ISOs must refine their sales processes. Aguilar pointed out that many agents still rely on paper applications, even as merchants increasingly prefer digital onboarding experiences. He explained that while some merchants may still favor traditional methods, transitioning to digital platforms can significantly streamline the onboarding process. “Moving them towards a digital application using e-signature will really help them get through that sales process quickly,” Aguilar added.
The Shift Towards Digital Solutions
Modern selling now mirrors the digitization trends seen in other business operations. Just as merchants have embraced digital solutions for inventory and payroll, ISOs are expected to innovate their approaches to prospecting, qualifying, onboarding, and supporting accounts. As merchants can easily compare offers online and switch providers with minimal effort, the competitive advantage of ISOs lies in building trusted relationships and providing advisory services.
Aguilar described the modern ISO as a “growth partner,” highlighting that the relationship with merchants is more vital than ever. While merchants can independently seek solutions online, ISOs that cultivate trust and offer personalized guidance are better positioned for success. As Aguilar noted, an ISO’s offerings should resemble a toolbox rather than merely a collection of terminals, incorporating various products such as integrations, point-of-sale (POS) systems, and payment gateways.
Technology plays a pivotal role in transforming ISOs’ sales models. Aguilar explained that effective payment technology streamlines the sales process, enhances onboarding experiences, and equips sales teams with the necessary tools to close deals efficiently. Properly implemented technology not only accelerates transactions but also fosters ongoing engagement with merchants, creating a sense of “stickiness” that encourages retention.
Leveraging Technology for Enhanced Engagement
Adopting a white-labeled payments platform can be a game-changer for ISOs, according to Aguilar. He noted that white labeling extends beyond mere branding; it can fundamentally change how ISOs prioritize and manage opportunities. A unified system allows for better communication and integration between sales teams and operational tools, ultimately improving efficiency.
For ISOs, the goal is clear: offering value-added services is essential for differentiation in a competitive market. As pricing becomes more transparent and switching costs decrease, modernizing sales operations with digital onboarding, integrated platforms, and shared dashboards is crucial. These advancements can significantly impact an ISO’s ability to secure new accounts and maintain existing relationships.
In conclusion, as the landscape of payment processing evolves, ISOs must adapt to meet the changing demands of merchants. By embracing technology and fostering strategic partnerships, ISOs can transform their role from mere service providers to indispensable allies in their clients’ growth journeys.
