FinTech (financial technology) refers to software, mobile applications, and other technologies created to improve and automate traditional forms of finance for businesses and consumers alike. FinTech can include everything from straightforward mobile payment apps to complex blockchain networks housing encrypted transactions.

The term “fintech company” describes any business that uses technology to modify, enhance, or automate financial services for businesses or consumers. Some examples include mobile banking, peer-to-peer payment services (e.g., Venmo, CashApp), automated portfolio managers (e.g., Wealthfront, Betterment), or trading platforms such as Robinhood. It can also apply to the development and trading of cryptocurrencies (e.g., Bitcoin, Dogecoin, Ether).

One hidden area of unlocking profitability are your merchant fee costs. Merchant fees are an accepted cost of doing business, but how do you know if you are paying the lowest possible rate on each transaction? Processing fees can vary between 1.5% to 4.3% depending on various factors, so on a sale of $100, you could pay anywhere from $1.50 to $4.30 in credit card processing fees. If total credit card sales are $10MM, that becomes $150,000 to $430,000, which becomes a fairly material variance. The end result is the same: a credit card transaction is processed, but why pay more?

Let OPS do an assessment of your current plans and we can tell you quickly how you can do better.