From the future of merchant acquiring to alternative payment methods to integrated lending, our CEO, Caleb Avery, had the chance to discuss some pretty interesting topics.
Recently, Tilled’s very own Caleb Avery sat down for a webinar with host PayCLT to discuss the past, present and future of the PayFac landscape. Afterwards, a successful Q&A session ensued, and we got to hear questions around alternative payment methods, merchant acquiring, and integrated lending. Let’s take a closer look at those:
#1: What are some of the major trends you see driving the future of merchant acquiring?
CA: Over the last five years — and in part because of the COVID-19 pandemic — there has been a huge acceleration of software-led payments. While traditional merchants like brick-and-mortar stores as well as e-commerce still make up the large majority of payments, about 20 percent of acquiring volume is through software and vertical ISVs. In the future I only see that growing further, and the question becomes: do legacy processors and acquirers have the best solution for these software companies? I don’t believe that’s true, and think it will be a problem solved by Fintech companies like Tilled, with modern APIs and new solutions like PayFac-as-a-Service.
#2: Does Tilled support alternative payment methods?
CA: Absolutely. We currently have a fully-integrated ACH solution, offer Apple Pay, and are looking forward to other solutions like RTP on our product roadmap. From a B2B perspective, we also have the ability to offer Level 2 and Level 3 processing, offering better interchange rates to our customers who are able to meet those qualifications. We see that as one of our main competitive advantages against companies like Stripe, Square and Braintree for our B2B customers that can send us more data and take advantage of those rate reductions. We’ve also seen that when we are able to offer those reduced rates, the number of credit cards that are used to pay B2B invoices increases, increasing payments monetization and profits for our customers.
#3: Is Tilled considering products to offer working capital to end merchants?
CA: Did someone from Tilled plant this question? But seriously, the answer is yes. Right now, we are looking at several partners to help us offer integrated lending through Tilled’s platform as part of our 2022 roadmap to allow merchants access to capital. Thanks to our ability to see their processing history and sales data, they could have the money in their bank account with just a few clicks, which would be a very exciting prospect not just for Tilled, but for our partners and their customers as well. Stay tuned!
& that’s a wrap! As always, we’re so thankful for the opportunity to provide our two-cents on the payfac market and chat about Tilled. If you’ve got even more burning questions, let’s talk!