{"id":25803,"date":"2025-09-23T05:55:58","date_gmt":"2025-09-23T10:55:58","guid":{"rendered":"https:\/\/reformingretail.com\/?p=25803"},"modified":"2025-09-23T05:59:59","modified_gmt":"2025-09-23T10:59:59","slug":"every-iso-agent-can-now-offer-embedded-payments-part-2-of-2","status":"publish","type":"post","link":"https:\/\/reformingretail.com\/index.php\/2025\/09\/23\/every-iso-agent-can-now-offer-embedded-payments-part-2-of-2\/","title":{"rendered":"Every ISO, Agent Can Now Offer Embedded Payments (Part 2 of 2)"},"content":{"rendered":"\n

To summarize from part 1<\/a>, embedded payments are growing.<\/p>\n\n\n\n

Today, embedded payments represent about 25% of US payments volume, and by the end of the decade it will top 70%.<\/p>\n\n\n\n

AND embedded payments offered by software companies are about to be the most expensive product shift in software history.<\/strong><\/p>\n\n\n\n

See, embedded payments in their current form are only<\/em> offered by a merchant’s software vendor.<\/p>\n\n\n\n

These software companies know that moving softwares is very, very painful.<\/p>\n\n\n\n

What do you think happens when a software vendor needs to show growth but is out of TAM?<\/p>\n\n\n\n

They turn the crank on payments.<\/strong><\/p>\n\n\n\n

SHOP, TOST, BILL: what are public “software” companies that all make substantially more revenue from payments than software.<\/h4>\n\n\n\n

The way a software company thinks about payment rate increases looks like this:<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The software can raise payment rates until the merchant churns. <\/p>\n\n\n\n

In our experience this boils down to three forcing functions:<\/p>\n\n\n\n

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  1. Competitors have better features<\/li>\n\n\n\n
  2. The merchant is bankrupt after swallowing fee increases<\/li>\n\n\n\n
  3. Poor support<\/li>\n<\/ol>\n\n\n\n

    The merchant needs to rationalize the move because it’s painful.<\/p>\n\n\n\n

    Oh, and the software cannot take all that excess margin at one time, otherwise they will be out of “TAM”.<\/p>\n\n\n\n

    Merchants don’t read the fine print of their agreements, and it’s not as if the software companies are upfront about the fact that the merchant’s rates are going to the stratosphere over time, either.<\/p>\n\n\n\n

    We think this is incredibly unfair.<\/p>\n\n\n\n

    A merchant gets into a software – often a software that they like – only to discover that they’re helpless.<\/p>\n\n\n\n

    Rates go up, increasing costs for merchants – and consumers – just so the software company can appease investors.<\/p>\n\n\n\n

    Not anymore.<\/p>\n\n\n\n

    It’s why we built POS+<\/a>.<\/p>\n\n\n\n

    POS+ allows anyone to integrate payment flows into softwares, including softwares that blocked payments competition.<\/h4>\n\n\n\n

    In other words, POS+ is enabling ISOs, agents, and any third party to offer embedded payments to merchants who have been locked into payments by their current software vendor.<\/p>\n\n\n\n

    POS+ handles many edge cases.<\/p>\n\n\n\n

    Cloud<\/p>\n\n\n\n

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