It’s Difficult For Legacy Payments Companies To Learn New Tricks
Legacy payments companies still have not fully embraced mobile applications. For example, Global Payments (tkr: GPN) chooses to white label certain mobile payment applications from Apriva rather than fully own its technology stack. All mobile applications are not created equal. The user experience differs dramatically across mobile apps and is primarily a function of the amount of time and effort a given technology company invests in its product portfolio, beginning with the quality of its Product Managers. Global Payments, Fiserv (tkr: FISV) and other legacy payment providers ought to have extended their footprint out to the consumer before PayPal (tkr: PYPL), Square (tkr: SQ) and Shopify (tkr: SHOP) got there. Similarly, the legacy players had an opportunity to build a network of APIs to simplify payments infrastructure. Instead, Stripe (private) captured that opportunity. A change in culture is needed at the legacy payments providers to spur innovation. This likely requires a change of senior leadership.