Is Software The New Credit Card Processor? | Omnichannel Payment Processing | B2B Vault: The Payment Technology Podcast Episode 102

Hey, what's up everybody? It's Justin live from B2B Vault, the payment technology podcast with your host Allen Kopelman, and we'll be providing you educational information about business payments, fintech, decentralized finance, and the technology businesses use in today's world. And in today's podcast, we'll be talking about how software is the new credit card processor, meaning instead of you doing the, you know, typical way of going about setting up a merchant account, you know, online processing is the wave of the future.

Yeah, it's becoming the way of the future. I mean, it's disrupting our business. Right now where, you know, you had companies been doing this for over 20 years. So, you know, the first companies that came into the business was PayPal and Stripe and Square and, you know, Shopify. And all of these companies, they're all centered around like the product, right? You know, and then it's not really like, oh, you're getting a merchant account. It's more like, oh, you're getting this product, right? And that's what it is, you know, with QuickBooks, you're getting your accounting software, and then the payments is a side note to that, even though that's probably one of their biggest revenue generators. And the same thing with Shopify and all types of other services. And if you're what we call people that are software companies, we call them ISVs, or independent software vendors. And now those companies, if they want to accelerate how much their company is worth, right, they need to incorporate payments so that— let's say—

what do you mean by that?

So let's say I have a company and I, and I make software for hotels or I make software for restaurants. They want to capture the payments. Like Toast captures the payments. You sign up and you don't— and, and the way you do it is you don't do it the old way where you do paperwork. So we've been experimenting with this for like the last 2 weeks. Yeah, where we send people out a link, they answer 10 questions, and they have a merchant account in 10 minutes. And it's crazy, very effective, right? A lot of people are like taking, going, oh yeah, I want to do that. I want to do that. And then for bigger businesses that, you know, that's going to be not cost effective for them or robust enough, right? It's not going to be a robust enough solution. Then you can go through the— go through getting a regular merchant account. But we feel like the future is coming to where— and it's not enough for the software company to just go, okay, I want to partner with Nationwide Payment Systems., and then every single merchant has to call on the phone, and then we have to talk to them on the phone and negotiate with them and then get them set up. And then, oh, you got to go fill out some paperwork, and then we need your last 3 statements of your merchant account or your last 3 bank statements and your corporate paperwork and all that, right? You don't have to do any of that with PayPal, Stripe, or Square. You don't do— they don't, they don't ask you for any of that. They're using artificial intelligence. So we're working with a system that's doing the same thing.

Mhm.

And so now we're also looking for companies who want to do that. So like, if you have a software product and then you want to integrate payments, we'll show you how we can make it so you can accelerate the sales of your software, where your customer is not going, okay, I want the software, oh, now you got to call over to Justin at NPS, and then Justin talks to you on the phone, explains everything.

He's gonna send an invoice, right?

Send the link, collect all this data, send it over to the bank, and it takes 3 to 5 days to get you set up with a merchant account. Then the bank might say, oh, we need more information, this or that, whatever it could be. This is accelerating the process. So if you have a software company and you want to accelerate the process, we can help you. We've, we put together a whole guide on how it works. And basically, it's a complete no-risk program. So there's all types of companies who can do this. Let's say you make websites, right? And you're a website company. And now you want to, you want to create a new revenue stream for your company. Let's say you're making 3 to 5, or maybe 10 e-commerce sites a month on WordPress. That's a lot, but okay, Well, maybe that's a big—

that's a big agency.

Okay, you have an agency, or maybe you're just a one-man show. What can they make, 2 websites a month?

2 to 3, I'd say.

Okay, so even if you have 2 or 3 websites a month, if you're just giving your customer to PayPal and Square and you say— or and Stripe— you go, okay, let's say you have— let's just use the number 2, right? 2 customers a month. And let's say each one of those customers is doing $25,000 to $50,000 a month in credit card processing.

Thing.

You send them to these other companies, you're getting a big fat zero in your—

so you're— I think you're— we're missing with something real quick. So what he's saying is, for agencies, we're setting up e-com sites for a client, right? And how we usually do it is what we set and plug in, we install WooCommerce, and you put it in, you tell them go sign up with Stripe or PayPal, right? Right. And then we set it, boom, and it's done. And typically, I mean, I myself, I have never, you know, made a deal to where I was getting points on the back end for sales or stuff, stuff like that, right? I mean, I've tried, I've tried negotiating with different, well, companies who didn't have the finances to bootstrap the project, right? You know, like, hey, I'll take parts, pieces of the sales, whatever. But typically, after we do that, that's it, right? And you know, we're not making any more money from that e-commerce site unless they're on for a maintenance package, which I hope everyone is selling. But other than that, you're done. You install PayPal, you're off to the races, right?

What he's saying is you a check?

No, you're not getting any— PayPal doesn't do any affiliate. They don't care how many people you send send to them, right? They're still going to take their percentage off every payment that you get and every whatever. They're gonna get their fees, they're gonna collect their dollars, right? What he's saying is there's a new way of doing it, right?

So you can come, you can partner with us, and then let's say you have two— let's just say round numbers, let's say you can get $20 for each merchant. That I like to use low numbers because that way knowing it, and you have 2 people a month, and you said that's $40. So that's $40, and then at the end of the year you have 24— let's say you got 20 clients at $20, you're making, uh, $400 a month, right? Well, that just gets— you're— and that's on the low side. That could— number could be $1,000.

The way it explains, a little confusing. So what are you—

no, you're making $20 a month per client.

Per client. So every time you set up a website you install this, you make $20, right, each month, each month off of the products that they're selling from their store, right, without disrupting them, asking them for money. And they don't pay you, right? The, the client that you set this up for, after you install the product that we're talking about, they don't even— they don't even necessarily know, right?

Right. They don't know. They're just getting a merchant account, right? So So they're getting their merchant account, and then you have your own referral code. We're calculating that at the end of the month. We go, oh, you know, Justin's office had 5— signed up 5 people, it generated X amount of sales, there was X amount of profit. Justin's getting a percentage of that, and let's just say it's $20 for each one, it's $100. The next month, Justin does 5 more, now it's another that now it's $200 a month, right? So you're continually growing, you're building a portfolio. If you have a good sizable agency, maybe you're making 10 websites a month. But even if you have a small agency and you're only doing 1 or 2, you're creating additional income, right?

I mean, we're also kind of focused on e-commerce, right? Because this can be used for service industries as well. So plumber So like, if they're making payments, you know what I mean? Like, you can use this system, right?

You can use this system because you're basically linked into the— you can, you can link your software into our system. And then instead of taking a week or two weeks to get each person boarded to where they can take payments, they can be taking payments in 10 minutes. And we give you the credentials, you plug it into your software, and your customer's up and running.

So let's clear— let's just run it down real quick. So you partner with Nationwide Payment Systems for your merchant account, correct? Then you set up— we send— set up a referral link for you so that you can then sign up businesses under your referral link. So when you build a website for a new client, so instead of us going straight, hey, just use PayPal, we have a new solution where you can use our technology, and then therefore continue to make money monthly residually right off of that client without, you know, adding a percentage to their fee or making it more difficult for them. And it's just, it's just very easy.

Yeah, that's just one way, e-commerce. But the other way, let's say you had some restaurant software and you wanted to integrate payments into your restaurant software and be able to speed up the how fast you can get that customer processing. Right? So you can come to us and then we get you set up where you get an integration kit, you integrate our technology into your restaurant software, and then you also have integrated in there the— right, right. So they're signing up for credit card processing and then you're able to get your software out there and then working and doing payments right away. So it can work for like a SaaS company where I sell my SaaS software, and then I sell it— SaaS, software as a service. So let's say I have a software product, let's say I sell it to agencies, and then those agencies can resell that software to their customers.

Well, there's a good one. You— we were just dealing with the software who deals with dispensaries, right? Right.

This—

remember, that doesn't— it's a marijuana-related business, right? They, they do the inventory.

Oh, the inventory, right.

So it's the software that they sell to other businesses, right?

Yeah, yeah. And then they can accept payments through their— that's just direct payments. I'm talking about where, like, you have more like, I have a software and I sell it to you, and then you need to accept payments through my software. Merchant, right? So then, then you need a merchant account. So then all the people you're selling the software to, they all need merchant accounts so they can accept payments because they're using, you know, they're getting a white label or a co-branded label of your software.

Well, that's what I meant when by the, you know, the agencies, like for an agency who's setting up a, you know, web design agency, we're setting up, we're building websites for all different types of businesses.

Right.

You know, one is a huge— home remodeling is a huge industry where they're starting to— well, not starting, I say in the past 5 years you could see the— they're evolving into like the future, right? Like most home remodeling agencies, home remodeling companies, you look at their website, either they don't have one or they only use Facebook or whatever, you know. So those types of companies are like ripe for the picking for this type of stuff because those are the types of companies who are still sending checks, invoices by mail, email, stuff like, you know what I mean? Like, so they are like, those are the types of companies where, I mean, as an agency, like, you know, we still build websites for them, right? But we never really had a way to, you know, like monopolize or to—

yeah, you're creating another form of income, right?

It's a revenue stream that we did not have, right?

But it's more, you know, you but we're focused on the, the e-commerce industry. But also, you know, we're focused on other industries too, where people have a software. Let's say you had a software and it was specialized just for like plumbers, right? Right. Or it's specialized just for towing companies. Well, we can help you speed up your sales of your product because you're not going to have to go through like call somebody on the phone, get the paperwork, fill it out, send in all the documentation. We can, we can get you set up where you're basically a white-labeled or co-branded PayFac through our system, and then your customers basically answer 10 questions and then they get a merchant account. They, they verify their bank account, they verify their identity. It's very easy, usually takes less than 10 minutes, right? And we're doing this and it's working. So now you want— we want to take this to the next level. The next level is, is these, you know, you have these ISV companies. So a good example is there's a company called Rent Cafe, right? Had another name before, and they collect rent for apartment complexes. So they collect rent for thousands and thousands and thousands of apartment complexes. They put in payments into their software And, you know, so, and then all these apartment complexes get an account, right? So they're— that's where now their company's worth 100 times more than it was worth before when it was just a software company. So it's the same thing for any type of software, whether it's for retail stores, for maybe you have some special Maybe you built, um, built something out for, um, for a particular industry. Like a guy built something for cornhole, website for cornhole, right? And it does all the specific things that you need to do because it's a specific industry, right?

Right.

So give that one as an example. So that, you know, we're partnered with them right now, but we're not on this— on this system. If we were using this system with them, they would be able to sell the website, get the person the merchant account, and not go through the whole paperwork process of getting a— getting them set up. So that's kind of like what we're working on now, is to basically like bring that to various different types of industries, whether you got hotel software, restaurant software, software that does whatever it does, and where you're— the people you sell it to, they need to accept payments through that software. And there's tons of them out there. There's hundreds and hundreds. People are trying to create this, but one of the things that they're skipping is they're partnering with PayPal or Stripe or Square, and they're not making any revenue. Their, their revenue for doing that is zero.

No, there's—

right.

I mean, I haven't heard unless they have like a specific partnership with PayPal or something.

No, you got to be giving them like thousands of customers.

I mean, do they even care?

Yeah, like Stripe will partner with people, but they pay them very, very little. Exactly. So, you know, we built that, you know, we have a whole PowerPoint presentation we can send you if you have a software company. You can only see that if you're watching on YouTube.

But real quick, before you finish up, you know, I just want to say thank you to everyone. We just finished up our 100th episode last week, Friday. Away. We gave away the, uh, Oculus Meta Quest 2 to Jen. Yeah, Jen, hopefully she— North Carolina, in NC, North Carolina. She should be getting it like either today or tomorrow, I would guess.

Yeah, I think so. The next— yeah, should be getting it this next couple days.

Yeah, so thanks again to everybody. I haven't heard back from the other 2 people, so I'm gonna give that, uh, other 2 prizes to—

we'll have to have another, like, give it another small contest and give away the other Yeah.

So yeah, thanks again. Please don't forget to subscribe to the YouTube channel at B2B Vault, the payment technology podcast. Follow us on social media, TikTok, Twitter, Instagram, Facebook, LinkedIn @B2BVault. You can find us there on the— please join the community on Facebook as well. B2B Vault community page.

Yeah, you ask us some questions on the community page. And, uh, we answer them on the podcast.

Yeah, check us out on Spotify, Apple, Google, Stitcher, Amazon, Pandora. We're always— we're everywhere. Just go ahead and Google B2B Vault, or you can Google the Payment Technology Podcast and we pop up as well. Head over to b2bvault.info for more information. If you're looking to apply and get a merchant account, there's a button on the top of the navigation that says Apply Now. Go ahead and fill that out. Boom, you're, you're off to the races. Or if you want to just ask a few questions, text, text the word BOOK to 954-827-9818. There you go.

Yeah. And book an appointment. Super simple. So this is, you know, so, you know, that's what we're doing, you know. So that's one of the things that we do. Is talk to companies. And this is a very big movement in the payment industry right now, where software and combining payments with software that is going to have customers using that software to collect payments is going to be a huge business in the next 5 years.

Yeah, the agencies— I think that once, like, digital marketing agencies and these web design agencies You know, I'm, I'm, you know, we're always, you know, like, I'm a web designer, I have my own company, right? So like, we were very— I was always in tune with technology and finding new ways of getting paid, right? But these types of options weren't— it wasn't all in one, you know what I mean? Like, if you wanted to use a, you know, get paid by a link, you had to set up one account. If you wanted to set an invoice, you had to set up another account. You know, there was a lot of ways. I mean, QuickBooks like was kind of but it was expensive. So not all small businesses could afford that, right? Right. And this way, you know, it's going to help, especially the small guy, like, you know, someone like myself who was trying to, you know, who was really just getting 2, 3 clients a month, sometimes, you know, 5 months, good months. But at the end of the day, getting paid was difficult, right? Like, you, you would rely on the invoice, or you would rely on the one technology that you have. And with this, you know, platform, you could— if you wanted to, you could send an email to the client, you could shoot them a text, you could shoot them an SMS— I mean, an instant message. Then you can invoice, do an invoice, you know, all kind—

you can send them a payment link.

That's what I meant. Like, just, just—

it's just—

there's just these— the, the technology that is available to us right now, you know, it's just really cool. And I'm It's, it's really awesome to be on like the ground floor of it right now.

Because it's growing, using it.

Like, I was sending these links to a few of the like, like I was telling you earlier, right? And they were just railing me, you know what I mean? Like, this is what they were nitpicking about stuff. And then I was like you said, they don't understand. They don't understand. Yes.

So if you want to see a demo of this technology backend, we can show you the demo of the technology backend, we can show you the frontend. We're— we already tested it out. We get people approved in 10 to 15 minutes. They're answering 10 questions, and this, this is the wave of the future. This is a way where you can grow your business. You can, you, you can literally like start growing your business because the biggest pain point people have with merchant services is filling out paperwork. So I know, like, I'm 62, I'm doing this for 20 years. 20 years ago You had to walk into a business, sit down, explain everything, get out actual paperwork. Then we went to like, you know, web forms and sending out for e-signature and all that. Now nobody wants to do that. The younger people who are starting businesses, they just go to PayPal, Stripe, Square. Well, there's a problem with those companies.

A huge problem with that.

So we did a podcast on PayPal, Stripe, Square— what's a better merchant account? We should repost the YouTube video.

Maybe we should just redo that one.

We can redo it again.

So, because there's more, right?

We have more stuff to talk about on that.

I mean, we could bring Zell into the fold in that too, right?

So what, what's better to use in your business, you know, in your, in your business? The thing is, is you want to use product where you could get a hold of somebody. Today I was just on the phone with a guy They're using Square, having all kinds of problems with Square. Square held some of their money. Now they want to get away from Square, right? Right. Because there's no one to communicate. It's all through email. So they're sending them emails and back and forth, and then, and then it doesn't work, right? So they just hold the money and that, that's it. With us, we're get— we're taking that same service that they have, right?

Exactly.

And the same exact thing they're doing, right? They're giving somebody a merchant account. By answering a few questions. Boom, right? But what we're doing, we're taking it to the next level. There's online chat in the portal where a guy will actually chat with you live from customer service for technical questions. If you have some other type of problem, we're available. We have 20 years experience. You call the office, you text us, the, you know, customer service in our office answers the phone. And then we can jump in and we can contact the processor and get whatever we need to get.

Or might be able to— I mean, if we, you know, right, depending on the situation, we might be able to log into the site, whatever. There's a lot of things that we can—

right, we can get into the back end and see what's going on and see where the problem is. And also, like I said, at the same time, if, if something is held up, we're able to go find out why it's held up, speak to somebody who's holding it up, like, come on, what's going on with the whole thing. Customer service, that's where a lot of these platforms platforms lack. You know, your, your Shopify, your PayPal, your Stripe, your Square— nobody has a phone number to get a hold of anybody over there.

I think PayPal does, but I have never—

no, but I'm just saying it's very difficult to get somebody on the phone. With us, we've been doing this for 20 years, so we're taking that service, combining it with what we've been doing great for 20 years, and now making that an awesome service for businesses called Omni Channel Merchant Account, and we want to partner with agencies and ISVs and software companies to help them create another revenue stream by linking them into our system, which is referred to as PayFac. So that's what today's podcast is about. We'll do another podcast, we'll, we'll update the information we gave about PayPal, Stripe, and Square probably in another week or two. Yeah, we'll do a podcast about that and talk about it. But omnichannel is the big rage right now. How can SMBs, small-medium-sized businesses, do— give people the omnichannel experience that large companies are doing? We have the software that can do that, plus combined with the 10 questions, 10-minute boarding we can help you accelerate your business today, right? So partner with Nationwide Payment Systems or contact us and get the link so you can get the 10-minute merchant account, right? Right. So everybody have a great day. Carpe diem. Thanks for listening to B2B Vault.

Peace.

We're doing— we passed 100 episodes. We're going to do 100 more. All right.