TSYS Acquisition Illustrates Ongoing Importance of Software Partnerships in Payments Tech

ETA member TSYS announced today its acquisition of ETA member iMobile3, a software provider which develops white-label solutions and value-added technology services for small businesses. The acquisition by the Georgia-based company with a history in traditional payments processing is yet another example of how software companies are bolstering offerings from payments providers through innovative, bespoke solutions.

“As the industry continues to evolve, TSYS intends to lead the charge in providing businesses with the best possible tools to compete in today’s hyper-competitive landscape,” said Philip McHugh, Senior Executive Vice President and President, Merchant Solutions, TSYS, in a release. “The acquisition of iMobile3 continues to propel TSYS forward to reach our goal of becoming the number one payments solutions provider to small and medium size businesses in the U.S.”

iMobile3 builds fully customizable applications that integrate into point-of-sale (POS) systems and payment schemes to add new capabilities like digital marketing and business analytics for merchants. Such value-added solutions, particularly when integrated into the point-of-sale devices, are quickly becoming essential to merchants.

According to ETA’s Payments Trends to Watch in 2018 report, U.S. merchants will spend $2.2 billion in 2018, and $2.4 billion in 2019, on POS software alone. Additionally, spending on customer analytics and loyalty management solutions will hit $1.4 billion in 2018 and $1.6 billion in 2019, the report found. POS vendors and their payment partners will look for new revenue opportunities by offering an ecosystem that delivers new solutions in addition to card acceptance, the report said. And ETA will be exploring this topic extensively at its upcoming event, TRANSACT Tech Atlanta, next week on June 12th.

“Software developers are changing the game in payments by unlocking new opportunities for payments providers to deliver value to America’s merchants,” said ETA CEO Jason Oxman. “As payments companies look to stay competitive in a rapidly changing marketplace, we expect the trend of increased investment in merger, acquisition and partnership activities with software providers to continue.”

TSYS’ acquisition is latest in an already active marketplace.

In late 2017, TSYS announced its billion-dollar acquisition of Cayan, a leading payments technology solutions provider for small businesses. Around the same time, JPMorgan Chase announced its acquisition of online payments platform WePay for over $200 million. At TRANSACT, the world’s largest payments technology event, Poynt, a next-gen mPOS manufacturer, announced a software partnership with talech, an independent software vendor (ISV), to integrate omnichannel solutions from talech to Poynt’s platform.

Last month, ETA member PayPal announced its plan to acquire popular mPOS provider iZettle for $2.2 billion to extend its presence in the hardware market for small businesses. Earlier this week, ETA member Paysafe Group completed its acquisition of large payments service provider iPayment, Inc.

ETA has been active in supporting software companies like ISVs, PayFacs, value-added resellers and others as they make critical connections to the payments industry. ETA sponsored over 50 software, ISV and payments tech companies, including startups from leading incubators, with complimentary attendance to TRANSACT. ETA also offers discounts on membership for startups to encourage and support collaboration with new, disruptive entrants to the payments ecosystem.

Software partnerships are shaping the payments industry. ISVs and software developers will be there to build partnerships in the sales channel. Hardware companies will be looking for software partners. VCs will be there to find new investments. Hundreds of payments professionals will be there to discuss the changing marketplace for payments companies. Will you be at TRANSACT Tech Atlanta? Click here to register.