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Payment Processing Business | The $15M Business Hidden in Plain Sight
Nov 26, 2024
Discover the intriguing world of high-margin payment processing targeted at state agencies, boasting an 81% EBITDA margin. Delve into the challenges of long sales cycles and the complexities of government contracts. Explore unique opportunities in mobile app payment solutions and the slow adoption of technology in municipalities. The hosts engage in lively banter while assessing potential risks, growth, and competition in this hidden gem of a business. Plus, insights into the benefits of credit card use for property taxes add another layer of intrigue!
32:10
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Quick takeaways
- The impressive EBITDA margin of 81% reflects efficient management and strong demand within a niche market for state agency payment processing.
- Navigating the complexities of governmental procurement requires persistent relationship-building and adherence to lengthy RFP processes to secure contracts.
Deep dives
Business Development in Payment Processing
Success in the online payment processing sector, particularly for state agencies, relies heavily on traditional business development strategies. Companies must proactively seek out requests for proposals (RFPs) and consistently engage with procurement officials to establish relationships and secure contracts. The process requires persistence and a keen understanding of governmental procurement laws, which can complicate sales efforts and elongate the sales cycle due to bureaucratic hurdles. Therefore, navigating this landscape requires not only strategy and tact but also a commitment to ongoing outreach and networking.
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