By: Bill Lodes – SVP, Strategy & Business Development – First American Payment Systems 


1. List the 3 hottest revenue-generators available today to POS VARs and/or software developers. Feel free to identify opportunities beyond your company’s focus.


There is a variety of revenue generating options for VARs and Software developers today. Many of those revolve around the payments industry. Payments are not only an added value to software offerings but they are also beneficial to the VAR and software developer as they open additional revenue streams. 


Within the past few years, the payments industry has developed many new revenue-generating solutions that VARs and software developers can profit from. Security has become a prominent concern, due to the increase of fraud, and several new solutions can be easily integrated within the software for VARs and developers for added protection including encryption and tokenization, breach protection and PCI compliance tools. Another timely revenue generator is EMV payments utilizing a chip card. 


Many consumers are expecting EMV payment options when they visit a business. Many VARs and developers are looking to incorporate EMV-capable solutions since the October liability shift has occurred. 


Finally, the ability to offer a variety of integrated payments including in-store, online, mobile and recurring payments can also support the growth for VARs and developers in the long run and allow them to differentiate themselves in their market. 


2. Describe what makes each such a hot opportunity.


Security is a very popular topic today as evidenced by data breaches that have occurred and reported the media as well as the switch to EMV. Business owners already have questions about the security protection they have in place when it comes to credit card data. They are looking for an expert in this situation, which can be the VAR or Software Developer. By offering security tools such as EMV, breach protection and tokenization/encryption in the hardware and software, the business owner is taking advantage of the latest security and trust is built in the protection of their data. 


Payment integration is also a hot topic these days as it introduces a new revenue stream for the VAR/software developer and also provides easy to use payments within the hardware or software solution. End users will appreciate the integrated solution and the ability to avoid stand-alone or alternative solutions, which might make their business process cumbersome. VARs and developers should look to provide options that include in-store payments, online payments, mobile payments and recurring payments that will help increase their customer retention and acquisition. 


3. Is the clock ticking on any of these opportunities? If so, what is the timeline?


The liability shift to become EMV-compliant passed on October 1st, 2015, and delaying adoption could cause detrimental harm to the merchant or business owner in an instance of counterfeit fraud. However, it’s not to late to plan for EMV implementation. Finding a payments partner who can assist in the strategy and execution for deploying EMV is a key first step in taking advantage of this revenue opportunity. A payments partner can considerably ease the overall transition to EMV readiness by managing certifications and device interactions and reducing PCI scope for developers. 


4. If a VAR doesn’t have experience with one of these technologies or solutions, can they still capitalize on the opportunity? If so, what steps should they take?


Absolutely. VARs or developers that lack experience with the above technologies or solutions can work with a payments partner who can assist and guide them on implementation. They don’t have to go about this alone. With the help of a payments partner, both VARs and developers will gain more revenue via the additional product options in their software and provide further differentiation in their market.