Square targets independent sales organizations again

Square, the point-of-sale and acquiring unit of Block Inc., is making a significant move to target independent sales organizations (ISOs), a merchant-sales model it previously avoided in favor of direct acquiring. This renewed interest in ISOs as a sales channel is evident in Square’s sponsorship of the Western States Acquirers Association conference in Palm Desert, Calif.

Mike Collins, Square’s global head of resellers, contributed to a panel on the evolution of merchant sales, highlighting the importance of personal interaction in this field. Collins notes that while technology can lead the way, the personal element is essential.

In 2024, Jack Dorsey, cofounder of Square and head of Block Inc., announced that Square might enlist ISOs to reach more merchants, a move the company had previously tried but deemed unsuccessful. Following the launch of an ISO reseller program, Block reported over 140 participants in May.

According to Collins, technology can help differentiate processors, and those leading with technology are not just pitching a way to save prospects money, but are actually bringing a solution to help businesses. This approach is indicative of a consultative sales approach, where the focus is on providing benefits rather than just a low price.

Shawn Dalton, senior vice president of Exectras, agrees that personal interaction is essential, saying “people do business with people they like.” However, the rise of integrated point-of-sale platforms, such as those from Toast Inc., may narrow the window in which a sales agent controls the merchant relationship.

A merchant using an integrated POS system may be a tougher sell because the system provides more business functions than payment processing. Any competitive system must offer similar functionality and be different enough to warrant the switch.

Some companies may turn to artificial intelligence (AI) to stand out, using it for statement analysis, generating sales presentations, and providing 24/7 support in multiple languages. This can help strip out administrative tasks and free up personnel to work on more complex issues.

Justin Vollrath, founder and CEO of PayCompass, notes that as AI adoption accelerates within payments, the personal element of the sale becomes more important. The goal is to use AI to provide faster access to information, making human interaction faster, more efficient, and more effective, rather than replacing it.