Article | November 26, 2019

How Payment Residuals Can Impact The Bottom Line

Source: EVO Payments

A conversation with Dan Viscount, SVP and Co-General Manager, IPOS Division at EVO

Medical Practice Bottom Line

Dan Viscount — SVP and Co-General Manager, IPOS Division at EVO — recently spoke with The Business Solutions Network about recurring revenue. Specifically, Dan discussed how recurring revenue can result in a more profitable exit when it comes time to sell your software company.

Q: What kind of impact can payment residuals have on an ISVs bottom line, both in terms of revenue and customer retention?

Viscount: ISVs are recognizing that selling software “only” will not enable fast growth, continued R & D, and/or keep a merchant long term. In addition, all ISVs struggle with sales distribution and look to the credit card acquirers to bundle their offerings. The successful ISVs create a full customer experience: Software-as-a-Service, support/ maintenance agreements, third-party value-adds, and lastly, credit card processing. The more connections and dependencies a merchant experiences, the harder it is for a competitor to unravel the relationship. This leads to a long-term residual stream that builds exponentially and becomes “guaranteed” monthly income or what some refer to as “mailbox money.”  Lastly, the recurring revenue model perks the interest of the investment community and then the fun begins.