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Interchange Cuts Both Ways

Visa and MasterCard interchange reimbursement fees are the financial bedrock of the payments ecosystem. It typically equates to the largest expense paid by merchants when accepting credit cards. It’s revenue incentivizes the issuers to create cards and lure new cardholders to their institutions. Companies like Cabela’s and major Airlines began issuing cards to serve as loyalty programs. Cabelas …

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Fintech Predictions for 2022

As we welcome 2022 with open arms, I would like to make a few predictions for the landscape of payments: Embedded finance and Banking as a Service(BaaS) will grow like a weed. We will see a tectonic shift in banking and finance infrastructure. MasterCard Send and Visa Direct will see massive adoption and breakdown barriers …

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Stuck in a bad payments relationship?

The past 15-20 years have given rise to integrated payments and payment facilitation in software platforms. As software companies realized the potential, often of uncaptured payments revenue that existed in their customer base, they ran to develop payment integrations and strategy’s with a wide array of partners. With any legacy providers in any vertical, there …

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Accounting for Payment Revenue in SaaS Platforms

With Mastercard’s North American payment facilitator registry listing close to 250 companies and companies like Finix and Infinicept touting the ease of implementing, PayFac is at a fever pitch in the software and payments world. This has only been compounded with IPOs like Toast, Lightspeed, Freshworks and Squarespace. Traditional payment processing companies account for net revenue, free of interchange and assessments, where as software companies and …

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Driving Payments Adoption in Vertical SaaS

Vertically focused SaaS platforms understand the revenue potential that often hides within their existing customer base. Private Equity companies continue to gobble up software companies, often operating with the thesis that an effective payment monetization strategy will drastically improve the payback period and revenue potential. HONOR is focused on integrated payments and often finds ourselves …

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How PayFacs Drive Revenue

Integrated Software Vendors (ISV) that choose a PayFac path for their payments strategy, over the long term, can have the capacity to earn more revenue than traditional payment models or referral programs.  They accomplish this through varying methods but the three core tenants for driving maximum revenue are adoption, functionality and commercial terms. First adoption …

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PCI Compliance for Payfacs and Traditional Acquirers

There are many double standards that exist in the payments industry. The landscape is littered with conflictions laid out from Security Standards Council(PCI), Card brands(Visa, MasterCard, American Express) and the sponsor banks. Companies like Square that have received investment directly from Visa benefit from bias rules created to manage an industry they are often competing against. PCI compliance has …

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