B2B The Covid-19 Equalizer and Next Frontier

In February 2020, the U.S economy was booming, the horizon was clear, smooth sailing. By the end of March 2020, the economy had ground to a halt with restaurants closed, retailers shut and airlines grounding their expensive fleets and parking planes in the desert. Covid-19 had made its mark on our shores. Prior to Covid-19 roughly 2.5 Million people a day took to the skies in the U.S. On April 8th, 2020 just 97,130 travelers passed through the TSA Checkpoints, a 95% reduction from the same day a year earlier. Much the same as the reduction at the TSA Checkpoints, Merchant Services Providers, Representatives, and ISO’s across the country saw their book of business shrink as establishments closed and the remaining few submitted less transaction than the year before.

Adding to these challenges, is the fact that the the B2C Merchant Services market in the U.S. is fully mature. Meaning there are precious few segments that are not already open to credit acceptance, free form competition and away from the race to zero. It is probably a familiar feeling to have lost a merchant account in the last 12 months to a competitor purporting to save your customer a penny or two on processing. Who would blame the merchants, every penny saved is probably going towards survival in these uncertain times?

There is though, an alternative for Merchant Providers, Representatives and ISO’s across the country to combat this erosion of business, it is B2B. Often Merchant Services people lament about the challenges they face in B2C when B2B is staring right at them. So why is that? For the longest time Merchant Services organizations, Representatives and ISO’s have only focused on B2C. B2B was considered hard to sell, difficult to gain access to and a much longer sales cycle. In fact, the B2B segment represents the greatest opportunity for Merchant Services with over $10 Trillion in potential new payments up for grabs and waiting to be processed. The Card issuer market has never been so robust with multiple players acquiring Cardholders for their Corporate Card programs with rich rewards and benefits. This in turn drives the demand of the C