Historically, the US payments market has been characterized by the Independent Sales Organization (ISO) model, which took care of different processes in the payment value chain such as processing, liabilities, risk management, underwriting and all services which in Europe are done primarily by acquiring banks.
At the same time, in Europe the traditional payment service provider (PSP) model functioned as a gateway and was focused on bringing together many domestic payment options in a single gateway, with one service platform and one reconciliation.
Those two models co-existed, since until now Europe has mainly been an alternative payment market and the US more of a card payment one. In the new ecommerce landscape, however, the evolution of these two business models, ISO and PSP, becomes clearer and clearer.
- European Payment Market vs. American Payment Market – discussion from the business models perspective
- ISOs vs. PSPs
- The influence of online shopping behavior
- The evolution of the two business models