Florida-based FinTech Stax Payments says it has acquired Atlantic-Pacific Processing Systems (APPS).
“The integration of APPS marks a significant expansion of Stax’s technology stack, giving partners and merchants flexible, customizable options for their payment processing needs on one cohesive platform,” Stax said in a Tuesday (Oct 17) press release.
The APPS platform, which will be renamed Stax Processing, will eventually serve as the “foundational processing layer” powering FinTech offerings for independent software vendors (ISVs), independent sales organizations (ISOs), and small and medium-size businesses (SMBs).
The expanded version of Stax’s functionality is set to debut during the last three months of 2023, with complete integration and more developments planned next year. Members of the APPS leadership team will join Stax, with APPS CEO Abe Maghaguian becoming Stax’s new chief payments officer.
Fifty members of the APPS workforce will also join Stax, the release said.
“As the payment landscape becomes more complex, users are looking for a one-stop shop for all of their payment needs,” Maghaguian said. “This acquisition gives our customers access to a highly experienced team who have worked tirelessly to reduce points of friction and maximize the value of payments for our partners.”
The acquisition comes at a time when 1 in 6 SMBs are considering changing payment processors, according to findings from “Main Street Health Q3 2023,” a PYMNTS Intelligence and Enigma collaboration.
“When considering a switch, the most relevant factor is transaction fees, which impact 59% of Main Street SMBs,” PYMNTS wrote Tuesday. “These results open the door for players to acquire new customers if they can offer more aggressive pricing policies and ensure quality service.”
Companies in the hospitality and consumer service spaces are the most open to switching providers, making these sectors the next battleground for players seeking to expand.
“But price is not everything,” the report said. “Main Street SMB clients also value other features when choosing a payment processor. For example, 54% look at fraud detection and prevention, and construction players and retailers that have been in business for less than five years are the most interested in such features.”
Still, SMBS tend to see their payment processors in a favorable light.
“With 85% of SMBs satisfied with their processor, those seeking to expand their client base must go above and beyond table stakes features and functionality to capture business from incumbents,” PYMNTS wrote last month.