What a difference a decade makes. The payments industry was in quite a different place in the 1990s, when mergers and acquisitions reigned supreme.
The reason for that uptick in activity, according to Marc D’Annunzio, a partner at McKenna Long & Aldridge LLP in Atlanta, is that the payments business is scale-intensive. “It isn’t just about building a system that can support merchant transactions on a given volume,” he says. “Once you’ve built the system, there are a lot of fixed costs you have to incur before you can get it up and running, operational, and compliant.”
After a company has cleared those hurdles, however, most adopt the theory that “the bigger you can get and the more transactions you can run through the system you’ve built, the more revenue you can generate and the more money you can make,” he adds.
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