Merchant attrition, or the loss of merchants, has long been a thorn in the side of Independent Sales Organizations (ISOs). While acquiring new merchants is critical, retaining existing ones  and providing added value, is equally important. Attrition not only cuts into an ISO’s recurring revenue but also impacts the long-term value of its portfolio.

According to industry expert Adil Moussa, principal of Adil Consulting, “Merchants are less inclined to leave a provider that offers relevant products for the merchant’s business.” 

This underscores the importance of providing comprehensive support and value-added services to maintain merchant loyalty.

This challenge has reached an inflection point in the payments industry. ISOs face increasing competition from fintech disruptors and growing merchant expectations for value-added services. As payment technologies advance, merchants now expect more than just reliable processing; they demand tools that help them grow their businesses.

Attrition isn’t just a loss of revenue—it’s an opportunity cost. The time and resources spent replacing churned merchants could be redirected toward growth. For ISOs, the real question is: How do we not only slow attrition but turn retention into a competitive advantage?

The Key Drivers of Merchant Attrition

Several factors contribute to attrition:

1. Lack of Differentiation: If ISOs only provide basic payment processing, merchants are more likely to switch to competitors offering more value.
2. Inadequate Support: Merchants often cite poor service or unresponsive ISOs as a reason for leaving.
3. Pressure from Larger Players: Big players with bundled services and loyalty programs are enticing merchants away.
4. Failure to Drive Merchant Growth: Merchants increasingly expect tools that help them attract customers, increase sales, and build loyalty.

How KLOSEBUY Helps ISOs Fight Attrition

KLOSEBUY offers a unique, all-in-one platform that directly addresses merchant retention by solving many of these challenges. Here’s how:

1. Engaging Customers and Building Loyalty
   Klosebuy provides merchants with loyalty programs and digital marketing tools to engage customers, increase transactions, and build stronger relationships. Merchants see real value in tools that help them grow—and merchants who grow, stay.
2. Reducing Attrition Through Measurable Results
   By helping merchants improve customer acquisition and retention, KLOSEBUY creates a ripple effect. Merchants experience more consistent sales and loyalty, which means ISOs enjoy longer, more stable merchant relationships.
3. Differentiation in a Competitive Market
   ISOs that offer KLOSEBUY as part of their portfolio stand out by providing more than just payment processing. This value-add positions ISOs as business growth partners, not just service providers, increasing their appeal to both new and existing merchants.
4. Revenue Sharing and Portfolio Growth
   The KLOSEBUY platform allows ISOs to share in subscription revenue generated by merchants. This not only creates an additional income stream but also ties ISO revenue directly to the platform’s success in reducing attrition and driving merchant performance.

The ROI of Retention

The financial impact of reducing attrition cannot be overstated. For example, reducing attrition from 20% to 10% could stabilize an ISO’s residual income and increase its portfolio valuation by 10-15x monthly returns. This level of stability attracts new merchants, strengthens relationships, and ultimately enhances the ISO’s competitive positioning.

Final Thoughts

Merchant attrition is not a problem that can be solved overnight, but it is a battle worth fighting. ISOs that take a proactive approach—by adding platforms like Klosebuy to their portfolio—can transform attrition from a pain point into a competitive advantage.

As the payments landscape continues to evolve, ISOs must prioritize retention as much as acquisition. By delivering tangible value to merchants, ISOs can not only protect their revenue streams but also position themselves as indispensable partners in their merchants’ success.

Klosebuy is here to help ISOs win the fight against attrition. Let’s grow together. 

For more information on how you can collaborate with Klosebuy, please contact us at; https://klosebuy.com/channel_partners