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TSG in Digital Transactions: With Integrated Processing on the Rise, Gateways Have Become a ‘Hot M&A Target’

Payment gateways are viewed by many as essential to providing integrated payments, which connects point-of-sale software used on computers to the payments system, says Jared Drieling, Strawhecker senior director of business intelligence, says in an email to Digital Transactions News.

“Gateways, as the name implies, connects merchants and payments through a platform,” Drieling says. “However, gateways are becoming more sophisticated and [are] now thought of as an integrated payments platform that can connect shopping carts, point-of-sale, etc.” The effort is to aid merchants in providing a shopping experience that works for customers across multiple channels.

Many merchants, especially those in retail, view omnichannel commerce as vital to competing against the likes of Amazon.com Inc., and also to keeping up with how consumer-shopping habits are affected by mobile devices.

This connectivity is key to the developing omnichannel payments environment, Drieling says, “and hence why there is an aggressive play by acquirers and ISOs to have a robust gateway platform.”

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