How A DSP Model Is Worth Far More Than Payments Residuals

Jordan Thaeler
Sep 4, 2018 · 1 min read

We earlier introduced readers to the idea that the POS will become a DSP, or Demand Side Platform, that facilitates programmatic marketing. This is huge for a few reasons.

  1. Merchants struggle to quantify ROI. This is not just limited to marketing. As a result merchants piss away money on things that never deliver on expected promises. Using the POS as a DSP will answer merchants’ ROI question, as least for marketing (though good POS systems are doing this for operations as well)
  2. As scale is created among POS providers for a collective DSP, there will be free supplier coop dollars for merchants to use in their marketing campaigns (more on this below)
  3. The payments industry, which is subsuming the POS industry, at least in US hospitality, only cares about POS because it reduces churn in their relatively lucrative payments business. Once more money is demonstrated to emanate from the POS than from the payments processing stream the payments industry will be forced to start thinking about value

Finish reading here: https://reformingretail.com/index.php/2018/09/04/how-a-dsp-model-is-worth-far-more-than-payments-residuals/

Jordan Thaeler

Written by

Dreamer, founder, entrepreneur, volunteer, data-driven, libertarian

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