My Personal Perspective

For years, payment processing has been characterized by what industry insiders call “the race to zero”, the continuous downward pressure on processing fees as providers compete primarily on price.  As founder and CEO of Klosebuy, a platform designed to connect local merchants with local consumers, I’ve witnessed firsthand how this race has shaped business practices across the industry. 

The “race to zero” has created a challenging environment where margins continuously shrink while merchant expectations grow.  Many processors respond by simply increasing their acquisition efforts, however, is this sustainable when retention remains problematic?

After years of working alongside payment professionals, I’ve observed an industry at a crossroads.  Many are still approaching merchant acquisition with the same tired playbook question, “Can I see your last three statements?”, instead of offering a genuine business value proposition beyond transaction processing.  I’ve seen many add-ons but this continues to be value added benefits that are process related versus offering to help merchants.

The reality is stark: if you’re experiencing high merchant churn and cycling through salespeople while your merchant count remains stagnant year after year, it’s time for a fundamental shift in approach.  

Entrepreneurs start businesses to sell a product, serve a community and generate a profit. 

Consider how helping these businesses drive growth, shifts the perspective and changes the equation: 

• When you help merchants succeed and extend their lifetime value, your processing revenue naturally increases
• Solutions that drive increased merchant sales volume directly benefit your bottom line
• Exclusive offerings in your market create competitive differentiation that transcends price competition

At Klosebuy, we built our platform not just to create another revenue stream for processors, but to help small businesses thrive. We’re focused on connecting local merchants with local consumers throughout the critical purchase journey.  This is at the core of why Klosebuy was created. 

When merchants successfully capture consumers at each stage of this journey, everyone wins: the merchant, the processor, and the local economy and the community. 

We’ve intentionally priced Klosebuy to be accessible for businesses of all sizes because we understand the bigger picture of local commerce and they’ve been underserved for years.  We’ve removed all barriers to entry for business: No hardware. No integration. And for Do-it-yourself (DIY), No contract along with a free trial period.

The question for payment professionals today is simple but profound: Are you fixated on immediate revenue sharing percentages, or are you prepared to work smarter by providing tools that genuinely help your merchants succeed in the long term?

By providing small businesses with affordable tools to acquire customers and increase sales, you’re strengthening what relationship you have with your merchants. 

If this resonates with you and you’re looking to grow your portfolio and make it more stable, if you’re tired of the churn, ready to differentiate your offering, and serious about growing sustainable revenue, let’s talk. 

Don’t just process another transaction. Transform your merchant relationships. Email me at  sales@klosebuy.com.