The Monetization of Software Card Volume
Contrary to what many payment experts will say, there are a variety of ways to monetize payments with differing models, each with their own set of rules/regulations, risks, and rewards. Getting into payment processing and monetizing payment volumes is not a simple task; it is, however, a potentially a very profitable one.
Check out TSG's recent article Gold Rush: The Monetization of Software Card Volume.
PE firms and the management at the software companies must consider a few key questions:
- How much do you know about the payment’s ecosystem and the key players that function within it?
- What in-house resources do you have available, or already dedicated to this initiative?
- What current technological capabilities do you possess?
- What is your risk appetite?
- Do you plan to outsource any part of the operation?
- Do you have the human capital/resources to support customer services, boarding, or chargeback processes?
- Do you have the expertise/know-how to take on sales of payment services?
- What will your pricing strategy look like?
- Do you understand what the PCI impacts will be as you take on greater payments’ responsibility?