APPS Acquired by Stax Payments

Stax Payments, one of the leading payment service providers, has recently announced the acquisition of APPS (Atlantic-Pacific Processing Systems) to provide its users with a seamless and all-in-one payment service platform. The latter is a payment processing company. In a press release published on October 17, Stax mentioned that this acquisition is going to boost its payment processing capabilities. With the help of APPS, the company will be able to handle all kinds of transactions, chargebacks, processing requests, and other financial services more efficiently and securely. It also caters to the customers’ increasing need for a feature-rich platform, which offers all payment services under one roof.

APPS will now be renamed to Stax Processing and the platform will be used to offer FinTech services to all kinds and sizes of businesses across the globe. Their main goal is to serve companies that make software, offer payment services, and small-scale organizations that often struggle to ensure the smooth running of their business. This will make it possible for Stax Payments to cover a wider audience in the FinTech and payment industry.

APPS is known for developing tech-based software solutions that provide businesses with a platform to handle financial services effectively. There are currently over 50 employees working for APPS, and all of them will join Stax Payments now. The Chief Executive Officer of the Las Vegas-based payment processing company, Abe Maghaguian, will become the Chief Payment Officer at Stax. The press release doesn’t specify anything about the money involved in the acquisition. The companies have not elaborated on their collaboration either.

Insight Into the APPS Acquisition By Stax Payments

Employees at Stax have remained silent about the date and details regarding the APPS acquisition, although we do know that employees of APPS have already joined the Orlando-based company. Sarah Gerald, who worked as the Chief Operating Officer (COO) at Atlantic-Pacific Processing Systems has mentioned that she works as COO at Stax in her LinkedIn profile.

It’s not the first time we have heard about a merger that involves two payment service providers. It’s been happening more frequently, as businesses have started realizing the power of working together to bring everything a customer needs in one place. This saves them the hassle of downloading multiple applications or collaborating with different companies for varying financial services. The collaboration also strengthens the human resources, work efficiency, security, integrity, and other aspects of your services. APPS’ CEO says the same. He believes that Stax and APPS can offer a one-stop platform for small businesses, financial service providers, and multinational companies looking for a single, centralized, and robust system for payment processing.

APPS is one of the popular payment processing companies, known for serving more than 15,000 clients based worldwide. A few popular names in its portfolio are Visa (a famous credit card company) and Intuit (a financial software provider) among others. It’s clear that this partnership will put Stax in a better position, allowing the company to attract more profitable deals. They can also strengthen their partnership with some famous tech giants and financial service providers in the FinTech industry.

As mentioned earlier, the merger of APPS and Stax Payments has resulted in Stax Processing, which will serve as a one-stop payment service provider for businesses in different industries. This includes software developers, payment facilitators, independent contractors, small to mid-sized businesses, and so on. The press release suggests that this acquisition will help Stax offer its customers the ability to customize the solution to their requirements. In addition to customization, businesses will get better reporting functionality. This means they will be able to collect more data about their financial transactions and customize the solution however they like.

Paulette Rower, the new Chief Executive Officer of Stax, mentioned that she wanted an embedded payment system, where the payment processing and financial services could be embedded into the business management software, making payment processing hassle-free for businesses. It seems like the merger between APPS and Stax seems to align with Paulette’s goal. The embedded payment system will streamline payment processing.

This will prove beneficial for all sizes and types of organizations that work with Stax Processing but is particularly more beneficial for small-scale organizations that often struggle to juggle management, financial transactions, and other core business operations. They can now enjoy payment processing functionalities within their existing systems, making the overall process more efficient and better than usual. In an interview, Stax’s new CEO mentioned that the whole purpose of the acquisition was to streamline payment processing and make it a simple deal for businesses. They can enjoy greater flexibility, multiple customization options, and the ability to scale at their convenient pace without being restricted by the complexities of the payment industry.

Stax acquiring APPS is part of the bigger picture where many payment companies have merged. A few popular mergers within the industry include:

• SpotOn’s acquisition by Shift4 Payments
• NMI and Sphere merger
• Fiserv, a payment service provider and the parent company of Carat and Clover acquired Skytef to grow its name in the international markets.

These mergers suggest the partnerships between payment service providers and how beneficial it is, not just for the companies, but the clients it serves.

When talking about what it will bring to the table from its merger with APPS, the company mentioned that it plans on introducing new payment services within this quarter. The integration with APPS and the introduction of new features and services will continue in 2024. Stax will continue to expand its operations and add new features to its portfolio, providing its clients with extensive and streamlined payment processing services.

The CEO of Stax said that the acquisition of APPS has improved its ability to offer better financial services while focusing on innovation, more now than ever. This innovation, which results from the merger, will help businesses come up with a customized plan that fits their payment processing and financial service requirements. Businesses that worked with APPS or were part of Stax are also looking forward to the benefits that come with this merger. After all, a unified platform that offers all types of payment services and payment processing benefits in one place is something that can help every business.

What Customers Want

Surprisingly, this news has come at a time when 1 in 6 small-scale businesses are planning to switch their payment processors. A report by Enigma shows that many companies want a simplified and centralized payment service that could provide them with all payment-related services under one platform, while offering additional features, like reporting and analytics, staff management, customer management, and so on.

Most importantly, businesses need a solution that can integrate flawlessly with their existing management system, so that there’s no need to replace the existing unit. Another report by PYMNTS shows that the biggest factor a customer considers when choosing a payment processing service is the transaction fee. Since that’s going to affect their budget and the bottom line, it’s obvious they will want to stick to the processor that charges a reasonable fee and offers exceptional services.

A vast majority of these clients come from hospitality businesses, as people in these industries are highly likely to switch payment service providers to get the best deal at the best rate. The report also says that price, though important, is not the only factor that SMBs take into consideration when choosing a suitable payment processor. Many factors matter.

Given the level of convenience and efficiency people want from their automated software solutions, it’s natural that they will expect the same convenience from payment processing units, be it the hardware, software, or a combination of both. Around 54% of the clients in the construction and retail businesses, especially businesses that have been around for less than five years, need a system with robust security and fraud detection programs.

Despite all this, many small businesses are satisfied with the level of service and features they get from their payment processors and are not considering switching merchant service providers either. The report says around 85% of customers are okay with their payment processors. That means there’s still a lot that the emerging payment processing and financial service providers have to do to catch the attention of this audience and expand their clientele base to the domestic and international markets.

Stax Improved Its Payment Service Infrastructure With New Acquisition

The acquisition of APPS is indeed one of the biggest milestones Stax could achieve. That’s because the type and nature of businesses that APPS has partnered with so far shows the credibility of the company and the scope for a business that acquires it. The acquisition won’t just give Stax a chance to innovate and offer premium services to its existing clients, but it means the company will get broader exposure and some reputable clients that worked with APPS.

As mentioned before, the advanced functionalities and the new version of Stax, renamed Stax Processing, are all set to be released in the last quarter of the year and will continue to make an impact in the coming year. The company will also release its upcoming integrations and plan for future developments in 2024.

How Will the Acquisition of APPS Benefit Both Companies?

Let’s take a quick look at the ways Stax and APPS can benefit both companies, as well as their clients.

• Better Services: Stax is a payment service provider, but lacks many features that APPS has. The integration of the two will enable Stax to expand its existing range of services and provide financial services to a wider audience. That’s the reason why Stax has mentioned that it’s planning to launch many additional functionalities and integrations once its acquisition of APPS is over.
• Increased Clientele Base: APPS is known for its huge clientele base, which covers Independent Software Vendors, SMBs, and Independent Sales Organizations. While Stax also enjoys a decent customer base, the integration with APPS will provide it with better exposure. The company can connect with clients from different industries. It will increase Stax’s clientele base, plus provide it with an opportunity to work with some reputable companies in the financial sector.
• Expertise: More than 50 employees, who were once a part of the APPS team, have joined Stax Payments. The additional workforce will bring a lot of innovative ideas and talents to the table. This will further enhance Stax’s ability to improve its payment infrastructure.
• Gain Competitive Advantage: As mentioned previously, many SMBs have been considering switching their payment processors. They are looking for a single, centralized place where they can enjoy all payment processing and financial services without switching the software applications. Stax and APPS integrations will help customers get all payment services in one place, thus giving the team a competitive advantage.

About Stax: Price and Features

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Formerly called Fattmerchant, Stax is a popular merchant service provider that has gained popularity for its versatile and reasonably priced payment processing services. It’s great for businesses that process transactions above $5000 every month and are looking for a solution that comes with a 0% interchange fee.

It’s no markup on interchange fees is its biggest benefit. The company imposes a flat monthly fee that it charges in addition to the payment processing fee, which is quite reasonable for a mid-to-large-scale organization. Its pricing model can save money for some businesses. It’s no markup on interchange can offset its monthly subscription fee.

In addition, the company offers many unique add-ons, including a feature that allows you to set up your online store quickly or sell gift cards. The solution is also customizable for invoices, receipts, and other services. Stax accepts all kinds of payment methods, including keyed, in-person transactions, mobile, and invoice payments. The best part about Stax is that it doesn’t bind you to any contract. Unlike Clover and other payment processing solutions, there’s no fixed length for its agreement. You can cancel the plan anytime without incurring an early termination fee. The platform is compatible with QuickBooks, Xero, Zoho, HubSpot, etc. They offer support 24/7 through phone, live chat system, and email.

Pricing

Stax doesn’t come with a contract and gives you an option to select your terminal. They offer three subscription plans and a custom plan for large-scale businesses that need additional, custom features. Although there’s no makeup on interchange, the company has implemented a processing fee, which is charged in addition to its monthly subscription fee. You can choose from Growth ($99/month), Pro ($159/month), and Ultimate Plan ($199/month).

In addition, you are supposed to pay an interchange fee plus a payment processing fee, which ranges from 8 cents to 15 cents. You can buy its card reader for $300.

About APPS

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APPS or Atlantic-Pacific Processing Systems is a payment solution that works for businesses of all sizes, natures, and types. It’s an omnichannel payment processing company, offering scalable, customizable, and end-to-end payment processing services that can help businesses process their credit card transactions and contactless payments seamlessly. The platform supports small businesses, independent contractors, software developers, large-scale organizations, and retailers in providing highly optimized payment services to their customers.

Not only for payments but APPS is known for its chargeback management system that supports automation and easy handling of different chargeback cases. The system accepts payments through keys, card swipes, EMV transactions, and all forms of contactless payments. If your customers do not want to swipe or key their cards into your retail POS system, APPS accepts contactless payments. All reputable digital wallets, including Apple Pay and Google Pay, are acceptable. In addition, it supports ACH and check processing. Finding the right gateway is one of the biggest challenges for a business. Well, APPS helps here too. The platform supports more than 100 payment gateways, all of which are reputable and have flexible terms and conditions.

What else? With APPS, you never have to worry about picking the right ERP, CRM, and shopping cart solutions. They have partnered with many software developers and can help narrow down your list to the most viable solutions for your business.

Conclusion

APPS acquisition by Stax Payments is one of the many mergers we have seen in October 2023. Driven by the increasing demand for a single centralized payment processing unit, this merger won’t just benefit the two companies, but it can streamline payment operations for small-scale businesses, independent contractors, and all kinds and sizes of businesses that rely on either of these platforms for payment services.

The integration of the two will enable both groups to innovate and work together as a unified platform to offer exceptional customer service. Although the companies have not disclosed any details regarding the price of the acquisition or the new transaction fee and costs, they have made many things clear. To name a few, the integration will bring a lot of new functionalities, which will customize the platform and offer better security, plus improved reporting features. Moreover, the company will be renamed as Stax Processing. Customers await the integration, which will hopefully result in one cohesive platform.