The Evolving ISO Model: A Look at Payment Processing's Future

In this episode of Payments Ground Game, hosts Kevin & Elaina Smith are joined by a special guest, James Shepherd, a well known industry expert who’s behind a few different successful businesses including ISO Amp and CCSales Pro. In this episode, we talk about the significant shift in the ISO model over the past few years and do some forecasting about what’s to come.  We talk about the trend of point of sale systems transitioning from being predominantly processor agnostic to now favoring integrated payment solutions. Private equity firms are honing in on this, which is changing the profitability landscape for processor-agnostic POS companies. James shares details around his venture into the self-storage sector, unveiling the lessons learned from an initial failure and then, his strategic comeback. This example really helps shed light on the specialized focus required in our industry today and the growing importance of vertical solutions. We'll explore the changing ISO model and the future of payment processing, delving into the necessity for operational efficiency and scale. Plus, we'll cover the recent industry shifts, such as traditional gateway and terminal providers directly entering the market, upending old strategies and prompting a rethink on partnerships. So, get ready to challenge the way you think about the ISO model and uncover what it takes to navigate this industry moving forward. Stay with us as James Shepherd brings his perspective to the Payments Ground Game.