“A Clear Trend of VARs & ISOs Working Together is Developing”

By: Jim Roddy, President & CEO at the RSPA

Sometimes what looks like a trend in the retail IT channel turns out to be a sugar-high, hot one month but irrelevant the next. I discovered something recently that not only seems to have staying power going forward but it’s already impacting our industry in ways many of us (me included) hadn’t realized.

Perhaps the best way to set the scene for you is to share my reply to a question from a longtime retail IT channel leader who emailed me last week. He wrote:

This morning I am going to talk about channel chatter in our management meeting – good, bad, or ugly. Do you have any immediate channel chatter you think I should mention – consolidation, disruption, or other?

Here’s my reply:

The biggest new trend/disruption that’s captured my attention – and could be relevant for both [company name redacted] and RSPA – is ISOs realizing their days leading with payments is coming to an end very quickly. 

Those ISOs need to become VARs or they will perish; their merchants are being marketed to non-stop by the margin-obliterating, VC-backed, 800-number, direct-selling POS providers, and a payments-with-lite-POS offering doesn’t cut it anymore in many verticals. 

RSPA VARs are rightfully worried about “the 800-number guys”, but they’re currently offering way more than many of these ISOs. I see a huge opportunity for us to help these ISOs convert to resellers/VARs. 

The stereotypical tiny, unsophisticated, trunk-slammer payments hacks aren’t going to make it. But the hungry ISOs who look like many of our current VAR partners did maybe 10-15 years ago, have a chance. They have strong merchant relationships and need the knowledge to grow and vendor/ISV/disty partners to help them upgrade their offering. 

I wrote about this in my post-SEAA piece (SEAA 2025 Analysis: “The Game Has Changed”), and the additional data I’ve gathered since then has only bolstered my point.

You might be asking, “What additional data?” Of the several one-on-one and small-group conversations I’ve had on this topic over the past few weeks, the June 12 RSPA VAR Business Growth & Development Community meeting was especially revealing.

Don’t miss the retail IT channel’s #1 trade show, education conference, and networking event July 27-29 in Las Vegas! Visit the RetailNOW 2025 website and register today.

The group explored how strategic VAR-to-VAR partnerships and VAR/ISO partnerships can drive growth and ward off the “800-number guys.” I framed my ISO-related question to the group as hypothetical and forward-looking: Would you consider doing this in the future?

That frame was a mistake. To my surprise, a few meeting attendees shared they are ISOs who have expanded their product offering which made them look like a VAR on the surface – and they’re already working shoulder-to-shoulder with VARs.

I felt like a guy asking “Do you think we’ll ever have flying cars?” as two Volkswagens with wings zip by my office window. Some ISOs are already firmly entrenched in the retail IT solution provider channel, and their friends (and competition) aren’t far behind.

After RSPA community meetings, we share with attendees top takeaways pulled from the meeting’s transcript. Among the most insightful from this VAR Business Growth & Development meeting were:

  • Today’s most valuable partnerships aren’t just about selling products – they’re strategic alliances built on shared goals, complementary strengths, and long-term commitment. This shift is helping VARs, ISVs, and ISOs grow faster together.
  • VAR-ISO collaboration is an emerging growth opportunity. A clear trend of VARs and ISOs working together is developing, especially as ISOs realize they need more sophisticated POS solutions to retain merchants and reduce churn.
  • ISOs need VAR expertise to survive market shifts. With payments commoditizing and the industry shifting from terminal-based to software-based, ISOs increasingly need VAR expertise in specialized verticals to provide comprehensive, differentiated solutions and stay competitive.
  • Successful ISOs have realized they need to offer value beyond payments. Offering additional services like web design, cellular failover, and specialized support helps ISOs differentiate and build stickier customer relationships, reducing attrition.

This trend is sure to progress and be a topic of conversation later this month at RetailNOW 2025, July 27-29 at Caesars Palace in Las Vegas. Peeking at the registration list, I see ISOs of all sizes signed up to attend – and I’m sure more will be added during the next few weeks.

How can I be so certain? In the month since the SEAA conference – where this trend vaulted onto my radar – RSPA has received lots of interest from ISOs we met at the show who want to join and embrace our VAR/ISV community.

The Macarena was a fad in 1996. Silly Bandz were a fad in 2010.

The ISO/VAR dynamic in 2025 looks to have significant staying power, presenting an intriguing growth opportunity for the high-initiative solution providers and vendors who pursue it.

Don’t forget to register for RetailNOW 2025, July 27-29 at Caesars Palace in Las Vegas. It’s Where The Industry Meets!


Jim Roddy is the President and CEO of the Retail Solutions Providers Association (RSPA). He has been active in the retail IT channel since 1998, including 11 years as the President of Business Solutions Magazine, six years as an RSPA board member, one term as RSPA Chairman of the Board, and several years as a business coach for VARs, ISVs, and MSPs. Jim has been recognized as one of the world’sTop Retail Experts by RETHINK Retail and is regularly requested to speak at industry conferences on SMB best practices. He is author of two books – The Walk-On Method To Career & Business Success and Hire Like You Just Beat Cancer – and is host of the award-winning RSPA Trusted Advisor podcast. For more information, contact JRoddy@GoRSPA.org.