Revel Systems is a Payment Processor now?
How genius is that?! Payment processors have been gobbling up POS companies lately. And it’s clear that processing is big money. But to think that Revel Systems would become a payment processor itself… Something I hadn’t even considered!
I had falsley assumed that when Revel Systems hooked up with First Data,that they’d locked down their processing options. I guess I was thinking far too closed minded. Revel Systems has bigger ambitions and this has to be part of the plan.
But why process your own payments?
That’s easy! There’s a huge amount of money in transactional payment processing. The processor sets the client up with what they need to take money from customers. The customers collect payments. A percentage of every card transaction, or online transaction goes to the processor. Debit cards too! So there’s a huge amount of money available here. But that doesn’t tell the whole story.
Revel Systems, has been running for a long time on investment capital. And recently brought in new CEO Scott Betts, with the likely goal of making significant cuts. This will take the company to a new, highly profitable place. Making it look even better for investors moving forward.
And what’s the quickest way to make money? Well getting to keep 1-3% of every transaction made on your POS is a great start!
But what about their other payment partners?
Those won’t go anywhere. Not anytime soon. It wouldn’t make sense for Revel to “mess with success.” Especially as they have so many large clients like Shell, and Cinnabon. Clients like these are likely tied to their payment processors moreso than their POS. Meaning if Revel hard-lined, and said you can only process with Revel, they’d lose big customers.
Another part of Revel’s strategy, is to sell to people who are in contracts with processors. So if you already have a contract with First Data for processing, of course they can move you to Revel Systems. They partner directly with Revel!
But what’s next for Revel Systems?
Well, Revelry is just a few weeks away. I’m sure we’ll get to hear all about their plans for the future then. I spoke with Mr. Betts back in February. He spoke about where he thought Revel Systems was headed at the time. And he said the industry to focus on was Specialty Retail. I’m interested in speaking to him again to see if that’s still a focus.
In a recent report I read on DigitalJournal.com, it said Revel Systems is still #1 in sales for iPad POS. It’s also a strong finisher in restaurant POS as a whole. So we’re looking forward to their event.
Revelry – Revel Systems
Revelry is being held Oct 12-13th, in San Francisco. I’ll be there, so I can get more details about what’s going on.
Check it out here: Revelry
Also, make sure you follow us on our social channels. And check out my other blog about Revel Systems and Specialty Retail here!