Guest Column | October 7, 2015

The Impact Of Mobile Payments On ISVs And VARs

By Bill Lodes, EVP, Business Development & Strategy, First American Payment Systems


As we close in on 10 years into the smartphone revolution, the payments landscape for VARs and ISVs is taking yet another path down uncharted waters.

The disruption of mobile payment acceptance is creating challenges for the VAR and ISV community and forcing them to react more now than ever. For the VAR and ISV community, 2015 has been a year centered on the EMV mandated liability shift. It was a year of education and gaining the necessary preparedness for the October deadline. EMV created an enormous amount of work to be prepared and consumed resources that could have been used on acquisition efforts. At the same time, it created differentiation or an advantage, specifically compared to others who did not enable EMV.

Mobile payment acceptance is another initiative like EMV that will require time and resources, but will further differentiate as well.

Apple’s entrance into the payments landscape last year was aimed at new customer acquisition of Apple’s products, but also at providing a safe and secure alternative to the traditional dipped EMV transaction. A year later, we now have Android and Samsung releasing payment capabilities. We now have all of the major smart phone providers competing for the e-wallet space on our consumer’s individual phones.

With that said, the VAR and ISV community has to continue evolving. Consumers’ requirements are changing — today they want the ability to transact using their phone, pay ahead, pay at the table, and pay through in-app purchases. The obstacles of adoption are being brought down with all of these new enhancements and the VAR and ISV’s have to react to the changes.

Taking the traditional desktop point of sale (POS) to a tablet or hosted software application is the future for the community and extending that POS functionality to a smartphone with payment acceptance capability is a necessity.

The opportunity is now — taking advantage of this disruption into mobile payment acceptance will increase market share and most importantly ensure you are providing the latest secure and protected solutions.

For information from First American Payment Systems on integrating mobile payments contact