Todd Ablowitz, Co-CEO of Infinicept, spoke with Shanta Paratian (Manager, London). Todd highlights that there are two fundamental differences between the payment facilitator model and the traditional acquiring model that have allowed payment facilitators to completely innovate the signup, on-boarding, and servicing elements of the merchant experience.
1. How does the payment facilitator model differ from the traditional acquiring model?
There are two fundamental differences between the payment facilitator (PF) model vs. traditional acquiring according to the Mastercard and Visa rules. Traditional acquiring requires the acquiring bank to be included on any merchant contract. The PF model allows the PF to have a contract directly with their sub-merchant customer without requiring the bank to be included. The second difference is that the PF is allowed to handle the funds, while in the traditional model, the funds cannot be handled by anyone but the acquiring bank.
These two changes have allowed PFs, which are largely software companies, to completely innovate the signup, onboarding, and servicing elements of the merchant experience. This has created a vastly improved overall experience, tighter integration with the PF’s core software offering, and increased revenue and valuation for the PF.
2. Why is the payment facilitator market expanding at a fast pace globally?
The improved economics, valuation, and merchant experience have attracted an accelerating number of software companies to become payment facilitators. As this trend has snowballed, the large majority of new merchants worldwide are signing up with the payment facilitator model.
3. What are your hobbies? How do you spend your spare time?
I love alpine skiing and spend every opportunity exploring new terrain. In the summer I like to go running and spending time with my family – my wife Heidi, 13-year-old daughter, Hannah and 10-year-old son, Ben.
4. What is your long term “personal” goal?
I would like to ski at least one day in 12 consecutive months, and I would particularly like to ski the Alps some time.
The content of this article does not reflect the official opinion of Edgar, Dunn & Company. The information and views expressed in this publication belong solely to the author(s).
Shanta Paratian is a Senior Manager in the London office and has over 12 years of strategy consulting experience. She has worked with multiple players across the payments value chain, from banks, schemes, to technology providers and merchants. Shanta often works with global clients in Travel and Retail verticals. She has been involved in various projects focusing on payment optimisation, go-to-market and product strategies, and Request for Proposal support. She holds an MSc in Business Analytics and Consulting from Warwick University (UK). In her spare time, Shanta enjoys racket sports, visiting farmers’ markets and escaping to Hampstead Heath for a long walk.
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