By: Jim Roddy, President & CEO at the RSPA
Payments have been the centerpiece of the ISO model. At SEAA 2026, it felt more like a supporting role.
SEAA (Southeast Acquirers Association) show attendees typically label themselves as payments professionals, but everyone at the Fontainebleau Miami Beach was talking software.
An example of this was the Tuesday breakout session “Winning with Tech: How ISOs Stay Competitive in a Software-Led Payments World.” On stage were four ISOs that have shifted from payments-first to the DISD (Direct Independent Software Developer) business model, moving their just-developed software to the forefront and their processing to the background.
In the audience were dozens of ISOs and agents, all who admitted they had lost merchants to a provider whose offering was POS software that included payments. Their main competition is margin-obliterating, VC-backed, 800-number one-size-fits-all POS providers who don’t believe in a partner channel.
Observations from that panel detailed the catalyst of the ISO-to-DISD trend:
- “We were deep in our merchants’ payments, but not in their operations. You lose customer loyalty fast when you don’t solve their pain points.”
- “Software providers think more comprehensively about a merchant’s business. They ask better questions, they collect better intel, and they provide better solutions.”
- “The threat used to be the ISO down the street. You would win on relationships and service. While we were doing that, they (software providers) were trying to solve the merchant’s problems. We were showing up with just a (pricing) quote and a terminal.”
- “With the right software solution, the payment becomes invisible. If you’re invisible, you’ve been commoditized. When merchants stop thinking about payments, they stop thinking about their payments provider.”
One panelist shared his company had built a healthy business selling payments solutions to dentists and veterinary clinics, rarely losing a client. When his attrition rates started to rise, he called the clients who were bailing.
“They told me they switched their software which had Stripe embedded in it for payments,” he said. “That was my wake-up moment. The world had changed and I didn’t know it.”
Let’s talk about that changing world and what it means to VARs and ISVs in the retail IT channel – and these newfound DISDs:
Takeaway #1: VARs and ISVs have competition.
ISOs are transitioning to become DISDs, encroaching into the solution provider arena. I see DISDs as the “new VARs,” reselling hardware and services (including payments) wrapped around their own software. These ISOs might not have everything figured out with software, service, and support, but man alive can they outsell and outhustle their competition.
Takeaway #2: VARs and ISVs have new partnership opportunities.
As I just mentioned, ISOs are sales machines but they are far from Total Solution Providers like many veteran VAR organizations. High-initiative VARs can partner with these ISOs/DISDs to provide them support or go into deals together to provide a full solution.
Takeaway #3: These new DISDs will hit a wall eventually.
I’ve counseled many early-stage ISVs over the past decade, and most of them follow this philosophy: “My product is done and I think it’s freaking awesome – it’s gonna sell like hotcakes!” Talk with any RSPA software provider in business since 2024 or earlier, and they’ll regale you with stories of complexities related to rollouts, bugs, fixes, updates, integrations, partnerships, distribution, partner recruiting, partner management, and I haven’t even mentioned support yet!
That said …
Takeaway #4: The ease of developing AI-assisted software will take these DISDs a long way.
An RSPA member told me in Miami an ISV friend of his completely rewrote and upgraded his software in just 10 weeks with one developer using AI tools. What would have previously taken a team many months or years to accomplish was completed inside of one quarter. DISDs who embrace that model will be able to meet customer needs before bureaucratic software providers can schedule an internal meeting.
Takeaway #5: ISOs and DISDs need to integrate with the RSPA community to understand channel software provider best practices – ASAP.
During the Q&A for this panel, an ISO/agent in the audience asked, “How would I know if a software is a fit for my clients and me?” That neophyte-level question showed how new some ISOs are to the software and technology game. Being part of the nearly 750-member company RSPA community would give that ISO/agent dozens of POS software providers to compare against each other, and 450ish resellers/VARs/ISOs to ask about their experience with that software. The guidance from those members would potentially save him months of wasted time and money with the wrong ISV.
These new DISDs need the RSPA community to help them take the headfirst plunge leading with software and shifting away from being payments first. Just like you can’t be half-pregnant, you can’t be a half-hearted software provider. Fully embrace your new model or get into another business altogether.
Takeaway #6: Everyone’s a software provider.
You don’t have to watch this trend from the sidelines. Several under-10 employee ISO and VAR members I talked with this week shared stories of building an integration with the software they resell to meet the needs of an important customer or group of customers.
Repeated for emphasis: You don’t have to watch this trend from the sidelines. Embrace AI, lean on your partners, and drive your VAR/ISV business forward.
[Credit where credit is due: The SEAA panel mentioned above included John Badovinic of RSPA member Flute (formerly Aurora), Natasa Cvijanovic of Tesla Payments, Vaden Landers of Suede, and Emily and Dee Karawadra of Impact Techlab.]
Quantic Connect 2026
A juxtaposition to the ISO-to-DISD trend also took place at the Fontainebleau this week. When most SEAA attendees were heading to the airport June 10, Quantic Connect, hosted by RSPA ISV member Quantic, attracted about 80 reseller and vendor partners.
I was there to present with Quantic Co-Founder & CEO Vigyan “V” Kaushik on the future of AI and POS, particularly how AI is impacting and will impact VARs.
Quantic is fully embracing artificial intelligence with its soon-to-be-launched, AI-powered POS Buddy. “Every answer already lives in the POS. Finding it just takes too long,” said Quantic Director of Software Engineering Arnav Kaushik. “POS is often a data-rich but insight-poor platform. You can hook your merchants by showing them AI that provides them value.”
Billed as, “Your POS assistant, now in your pocket,” POS Buddy is integrated with the existing Quantic POS and works on both iOS and Android phones. Initial modules include inventory lookup, open order view, menu management, floor awareness, time management, support tools, and reports. The goal is to help restaurant leaders make decisions in real time.
The pitch to restauranteurs is to “have a conversation with your data.” They can ask POS Buddy – and receive real-time answers – “Which items are running low?”, “How many open tables right now?”, “What’s selling tonight?”, and “Can you show me tonight’s open orders?”
Quantic is an example of one more high-initiative RSPA member who isn’t just talking about AI or wringing their hands about scary new technology. They’re aggressively embracing AI to benefit their merchants. For details on Quantic’s POS Buddy, go to posbuddy.ai.
For more AI insights and ideas from RSPA members, visit the newly updated RSPA AI Resource Hub.
Everything Has Changed in Payments – Except What Matters Most
Comments from three perplexed POS and payments industry veterans I crossed paths with at SEAA stood out to me:
- “I’ve been coming to these payments shows for years, and I still don’t understand what people do.”
- “It’s impossible to be an expert on all things payments, especially today.”
- “6 months ago, I didn’t know what agentic commerce was. And I’m hearing it all the time here.”
Fintech has come a long way, and its pace of change seems to only be accelerating. That makes it almost impossible to be a payments tech expert. What to do?
Of course VARs, ISOs, and ISVs need to stay educated on the latest trends, but I think they need to sharpen their focus on what hasn’t changed over 25 years in payments and the retail IT channel (which ironically payments changed exponentially beginning about 20 years ago).
Among those principles:
- Payments are complex, and where there’s mystery there’s margin
- High-initiative solution providers will win in the long run
- If you sit on the sidelines, you’ll get sidelined eventually
- The best solution providers are educated and connected
- In the retail IT channel, innovation is required for survival
- The right answer is rarely evident at the outset, so you have to try, test, measure, and adapt
- You don’t have to go it alone; the right partnerships will get you there
- Recurring revenue rules
Solution providers who stick with these principles while attempting to wrap their brains around the changing POS and payments industry will win this retail IT channel marathon.
More from SEAA 2026
- SEAA 2026 attracted a record 1,800 registrants to the Fontainebleau Miami Beach June 8-9 for its 25th anniversary show. In 2001, co-founders Audrey Blackmon, Judy Foster, and John McCormick helped launch an affordable regional event for payments professionals. At the conclusion of this year’s show, McCormick, an executive with General Credit Forms, stepped down as an SEAA Board Member; he will remain as the organization’s Secretary/Treasurer.
- SEAA is guided by a seven-person Board that makes decisions collectively. SEAA’s President is Atty. Jill Miller, who has served as RSPA General Counsel and RSPA member legal advisor since 2020.
- I was honored to host the panel that kicked off SEAA 2026, “AI & Payments: Today’s Opportunities for ISOs, Agents, ISVs, and VARs.” RSPA members Travis Chrisman, President of Coastal Pay, and Don Wilczynski, CEO of Tried & True Consulting and Merchant Rescue, attracted a crowd of close to 230 even though the room fit just 160 seats. (Don’t forward that factoid to the Miami Dade County fire marshal. Thx!)
- “Remain curious and open to new ideas. If you’re not finding what you need inside your organization, seek a community outside. Innovation does not happen in isolation.” Dr. Gail Burgos of PayTech Women during her talk that opened the SEAA festivities
- “The future of payments will be built with the ecosystem, not alone.” Shan Li of Visa from her “Kicking Off the Next Era of Payments” presentation
- Stay tuned to the “Girls Just Wanna Have Funds” podcast for my conversation with RSPA members Naomi Maestra of NMI and Gretchen Bender of MAPP Advisors. We discuss industry trends, swap communication tips, and more. The discussion was a lot of fund! (Sorry, I couldn’t resist.)
- SEAA 2027 will take place May 24-26 at the Omni Hotel in Louisville, KY.
