In some cases, it’s survival of the fittest. In other instances, it’s two entities deciding that they’d both be better off if they joined forces or – as in the case of Visa – splitting up operations. Such mergers, acquisitions and spin-offs are all of great to interest to Cliq’s Andrew Phillips who has seen the payment card industry (PCI) thrive since his instrumental contributions made in the early 1980s. That’s because Mr. Phillips took an antiquated process of manual check-cashing and developed a technology-based solution that allows for credit and debit card processing at check-out lines across the country.
According to Mergers & Acquisitions magazine, there has been no shortage of transformative M&A deals in recent years. We’ll start with the aforementioned Visa deal that saw Visa Europe LTD. come back under Visa Inc.’s umbrella in 2016. According to the article, the combined forces of both companies could generate $200 million in pre-tax revenue while serving more than 17,000 financial institutions and 40 million merchants. Another recent shake-up in the M&A sector was the deal between Google and Softcard. According to the article, Google’s 2015 deal would mean that its “Wallet” program would come “pre-loaded on Android handsets.” The deal also paved the way for increased security measures surrounding wireless payment processing. The latter aspect is of great interest to Andrew Phillips of Cliq, who realizes that increased instances of swiping payment cards multiple times a day can create a digital breadcrumb train for thieves to try and track.
While Mr. Phillips was instrumental in the creation of Integrated Transaction Services, he would sell the company in 1996 and found Payment Resources International. PRI would eventually focus its operations on Internet-based payments and eventually become one of the first companies to offer full-service online payment solutions. Another industry leader would conduct outreach of its own and enlist the help of Cliq’s Andrew Phillips as this company sought to stem the tide of quitting merchants. This type of synergy exemplifies what productive M&A talks can bring about and it comes as no surprise to Mr. Phillips. Give the advanced in PCI processes and technology, it’s likely the more high-profile deals will occur with definite impacts to consumers. This isn’t a negative, Mr. Phillips points out, as the technology he helped shape now allows customers to swipe their debit card to chip-reading devices attached to smartphones and tablets. From there, federal oversight of secure payment systems go into action ensuring that card and card holder information is kept safe and secure.