Routinely small businesses think of methods to make themselves visible among high roller giants in their particular industry, no matter the product being sold. But how do moderate to high performers do the same when larger corporations are predominating the industry? This week, Global Payments acquired a $21 billion dollar takeover of Total System Services. For the FinTech community, this is big on the payment processing front. In a world built around cyber payments, this conglomerate will not only increase use of cashless payments, but will mark the third buyout of its kind this year.
Opinions have flown recently into debate over the wide scale use of FinTech corporations in regards to pros and cons. On a positive note, a multi state and city corporation will give undoubtedly numerous jobs to the areas they infiltrate. As a negative side effect, how will smaller businesses who promote the same digital solutions for cashless flow operate? Although PayPal and Square are popular on their own right, others who operate on a smaller scale like Venmo and Cash App may have a harder time competing in the grand scale of comparison when used by local or extremely small merchants.
This merger will do wonders for business opportunities within those corporations, but will this drive even the smallest merchants to use these processing systems as opposed to smaller third party competitors? Will the quality of these systems be better? Or will this be the end of small competitor processing systems as we know it?
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