Host Merchant Services, LLC Company Profile

Background

Host Merchant Services, LLC (HMS), established in 2010 and headquartered in Newark, Delaware, is a registered Independent Sales Organization (ISO) with Visa U.S.A. and MasterCard International, with bank sponsorship provided by Wells Fargo Bank, Walnut Creek, CA. The company specializes in providing comprehensive payment processing solutions, including credit card and electronic payment processing services, to a diverse range of businesses. HMS's mission is to bring trust to the payment industry by offering transparent pricing, exceptional customer service, and tailored solutions that meet the unique needs of each client.

Key Strategic Focus

HMS focuses on delivering customized payment processing solutions across various industries, including retail, restaurant, e-commerce, and high-risk sectors. The company's core objectives include:

• Transparent Pricing: Offering interchange-plus pricing with no hidden fees, ensuring clients understand their costs.

• Exceptional Customer Service: Providing 24/7/365 support with a commitment to resolving issues promptly.

• Technological Integration: Partnering with leading point-of-sale (POS) system providers such as Clover, Vital, Bonsai, and SwipeSimple to offer versatile and efficient payment solutions.

• High-Risk Merchant Services: Catering to high-risk industries by offering specialized payment processing solutions through partnerships with entities like Electronic Merchant Systems (EMS).

Financials and Funding

Specific financial details and funding history for HMS are not publicly disclosed. However, the company's consistent growth and inclusion in Inc. Magazine's Regionals Mid-Atlantic list at No. 79 in 2022, with a 129% two-year growth rate, indicate a strong financial performance.

Pipeline Development

HMS continually enhances its service offerings to meet evolving market demands. Recent developments include:

• Expansion of POS Solutions: Integrating with multiple POS systems to provide businesses with flexible and efficient transaction processing options.

• E-commerce Capabilities: Supporting over 100 payment gateway options and providing virtual terminal and online shopping cart functionalities to cater to the growing online retail market.

Technological Platform and Innovation

HMS differentiates itself through its technological platforms and innovative approaches:

• Proprietary Technologies: Offering a suite of payment processing solutions that include mobile payments, EMV terminals, and virtual terminals, tailored to various business needs.

• Scientific Methodologies: Utilizing advanced security measures, including EMV and PCI compliance, to ensure secure transactions for clients and their customers.

Leadership Team

• Lou Honick, CEO: Prior to founding HMS in 2010, Lou was the founder of HostMySite.com and received numerous awards, including SBA Young Entrepreneur of the Year and Inc. Magazine's 30 under 30. His leadership emphasizes outstanding customer service and support.

• Dan Honick, COO: As Chief Operating Officer, Dan oversees the company's operations, ensuring efficient service delivery and client satisfaction.

Leadership Changes

There have been no recent significant changes or appointments within the company's leadership team.

Competitor Profile

Market Insights and Dynamics

The payment processing industry is highly competitive, with numerous providers offering a range of services to businesses of all sizes. Key factors influencing the market include technological advancements, regulatory changes, and the increasing demand for secure and efficient payment solutions.

Competitor Analysis

• Square Point of Sale: Offers a comprehensive suite of payment processing and POS solutions, known for its user-friendly interface and transparent pricing.

• Shopify POS: Provides integrated e-commerce and POS solutions, catering primarily to online retailers seeking seamless in-store and online sales management.

• Aloha Cloud: Focuses on the hospitality industry, offering POS systems that streamline food preparation and delivery processes.

• Lightspeed Retail: Delivers advanced inventory management and customer relationship management features, appealing to retail businesses seeking robust POS solutions.

• Heartland Retail: Offers cloud-based POS and retail management platforms designed for multi-store, multi-channel retailers.

Strategic Collaborations and Partnerships

HMS has established significant partnerships to enhance its service offerings:

• POS System Providers: Collaborations with Clover, Vital, Bonsai, and SwipeSimple enable HMS to offer a variety of POS solutions tailored to different business needs.

• High-Risk Merchant Services: Through partnerships with entities like Electronic Merchant Systems (EMS), HMS provides specialized payment processing solutions for high-risk industries.

Operational Insights

HMS's strategic considerations include:

• Customer-Centric Approach: Emphasizing exceptional customer service to differentiate itself in a competitive market.

• Transparent Pricing Model: Utilizing interchange-plus pricing to build trust and long-term relationships with clients.

• Technological Adaptability: Continuously integrating with leading POS systems and payment gateways to meet diverse client needs.

Strategic Opportunities and Future Directions

HMS's strategic roadmap focuses on:

• Expanding E-commerce Solutions: Enhancing online payment processing capabilities to cater to the growing digital marketplace.

• Innovating POS Offerings: Developing and integrating advanced POS features to provide comprehensive business management solutions.

• Strengthening High-Risk Merchant Services: Expanding partnerships and refining solutions to better serve high-risk industries.

Contact Information

• Website: hostmerchantservices.com

• Twitter: @HostMerchant

• LinkedIn: Host Merchant Services

• Facebook: Host Merchant Services