Newtek Merchant Solutions

What Newtek Merchant Solutions does

Newtek Merchant Solutions is a payment processing subsidiary of NewtekOne, Inc. (NASDAQ: NEWT), a publicly traded financial holding company founded in 1998 and listed on NASDAQ since 2000. The subsidiary provides credit and debit card processing, mobile payments (NewTaxiPass), the Newtek Gateway payment gateway, and the Newtek Payment Systems (NPS) point-of-sale platform. Underlying technology includes a PCI PA-DSS certified gateway with RESTful and SOAP APIs, EMV and NFC terminal support, tokenization, recurring billing, and Clover POS integration; infrastructure is hosted in tier-3 data centers in Phoenix and New Jersey through a partner, Intelligent Protection Management Corp. (IPM). The platform processes approximately $6 billion in card transactions annually and has served 2.2 million SMBs across all 50 states.

Newtek Merchant Solutions sits within NewtekOne's broader seven-solution SMB ecosystem that also includes lending ($5K-$15M term loans and lines of credit up to $5M through Newtek Bank, N.A.), insurance (commercial, personal, life, employee benefits through 50+ carriers), payroll, technology (powered by IPM), and accounting (powered by 1-800Accountant), all accessible through the unified Newtek Advantage dashboard. The subsidiary monetizes primarily through transaction fees on card processing, with parent-level consolidated Q3 2025 revenue of $74.94 million across all segments. Go-to-market combines direct sales specialists with a financial institution partner channel (banks and credit unions) that refers SMB clients via the patented NewTracker system; merchants span retail, restaurant, grocery, bar, taxi, and other verticals with no named enterprise anchor customers.

Name

Newtek Merchant Solutions

Legal name

NewtekOne, Inc.

Website

https://newtekone.com

Company type

Public

Founded year

1998

Operating status

Operating

Headcount range

51–100 employees

Short description

Newtek Merchant Solutions is a payment processing subsidiary of NewtekOne, Inc. (NASDAQ: NEWT), providing credit card processing, payment gateways, POS systems, and mobile payment solutions to over 2.2 million small and mid-sized businesses across the United States.

Ownership category

akta.pro rank

Product category

Payment Processing

NAICS

Sales Financing (52222)

akta.pro primary industry

Card-Present Acquirers (Retail & POS Focus) (FSAMABAC)

akta.pro secondary industries

Merchant Payment Gateways (API/Hosted Checkout) (FSAMACAA), Merchant Acquiring & Card Processing (PSPs) (CRAFALAB), Merchant Acquiring & Processing Platforms (BPAMAFAB), Merchant & Commercial Acquiring (POS/eCommerce acquiring for corporates) (FSABAIAH)

Keywords

• Payment processing
• Merchant services
• Credit card processing
• POS systems
• Payment gateway

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Infrastructure, Operations, Marketing or Sales

Revenue model

1. Payment Processing & Transaction Fees: NewtekOne processes approximately $6 billion in card transactions annually through its Newtek Merchant Solutions subsidiary. Revenue is generated through transaction fees charged to merchants for card processing, gateway fees, and POS terminal services across retail, restaurant, grocery, bar, and other verticals.
2. Business Lending & Interest Income: NewtekOne originates business loans ranging from $5,000 to $15 million through Newtek Bank, N.A. and its non-bank subsidiaries. The company has approved over $2 billion in business loans. Revenue is generated through interest income on issued loans, origination fees, and asset-based financing (accounts receivable and inventory lines of credit up to $5 million).
3. Insurance Commissions: Newtek Insurance Agency, LLC generates revenue through commissions on commercial and personal insurance products sold to business clients. The company works with over 50 insurance providers and offers group health, commercial, personal, and life insurance products.
4. Payroll Processing Services: Newtek Payroll provides cloud-based payroll processing, time and labor management, HR services, and workers' compensation pay-as-you-go insurance. Revenue is generated through subscription fees for payroll processing, with add-on fees for HR consulting, time clocks, and workers' comp services.
5. Technology & Managed Cloud Services: Technology services including cloud desktops, servers, managed IT, security and compliance, website security, cloud migration, ecommerce solutions, and business software are delivered through IPM partnership. Revenue is generated through subscription and usage-based pricing for hosted infrastructure, software, and managed services.
6. Accounting & Tax Services: Newtek Accounting, powered by 1-800Accountant partner, provides business formation, bookkeeping, tax preparation, audit defense, and tax advisory services. Revenue is generated through subscription tiers ranging from $0 to $399 per month, plus state filing fees.
7. Financial Institution Referral & Alliance Fees: NewtekOne earns referral fees from financial institution partners (banks and credit unions) when referred small-business loans and other solutions are funded. The company does not compete with depository businesses and does not charge partner institutions for the referral program.

Pricing tiers

Go-to-market motion3 records

Distribution channels3 records

Marketing channels5 records

Core offering

Newtek Merchant Solutions provides credit and debit card payment processing, point-of-sale (POS) systems, payment gateway services, ecommerce integration, mobile payment solutions, and PCI compliance assistance to small and mid-sized businesses across the United States. The subsidiary processes approximately $6 billion in card transactions annually and serves over 2.2 million businesses, supported by the proprietary Newtek Gateway, Newtek Payment Systems (NPS) POS platform, and the Newtek Advantage cloud operating dashboard.

Product overview

Newtek Merchant Solutions operates as part of NewtekOne's comprehensive business solutions ecosystem, offering a multi-product platform designed for small to mid-sized businesses. The core offering centers on Newtek Payments (payment processing, Newtek Gateway payment gateway, Newtek Payment Systems POS, and NewTaxiPass), complemented by Newtek Lending (term loans and lines of credit), Newtek Insurance (commercial, personal, life, and employee benefits), Newtek Payroll (payroll processing, time & labor management, and HR services), Newtek Technology (business software, cloud desktops, IT infrastructure, security, and website security via IPM partnership), and Newtek Accounting (tax and bookkeeping services via 1-800Accountant partnership). The platform serves 2.2 million businesses and processes approximately $6 billion annually in card transactions.

Differentiator

Problem solved

Functional benefit

Brands

• Newtek Advantage: A cloud-based operating platform providing instant access to 7 core business solutions including banking, payments, lending, insurance, payroll, technology, and accounting.
• Newtek Zero-Fee Business Banking™
• Newtek Gateway
• Newtek Payment Systems (NPS)
• Newtek Technology
• NewTaxiPass
• NewTracker™

Products and services

• Newtek Payments Core payment processing platform offering payment processing, mobile payments, ecommerce integration, zero cost processing, reporting and accounting, and security and PCI compliance for businesses across various industries.
• Newtek Gateway Ultra-secure PCI PA-DSS certified payment gateway supporting Visa, Mastercard, American Express, and Discover. Includes fraud modules, recurring billing, tokenization, customizable receipts, POS/terminal integration, and RESTful/SOAP APIs with sandbox and developer emulators.
• Newtek Payment Systems (NPS) Cloud-based point-of-sale platform with industry-specific features for retail, restaurant, quick service, bar, grocery, and assisted living. Includes kitchen display, table mapping, QR code ordering, food delivery integrations (Grubhub, Seamless, DoorDash, Uber Eats), barcode scanning, inventory management, and loyalty programs.
• NewTaxiPass Mobile payment solution for cab drivers that accepts credit card payments with a flat-fee model. Currently used by over 1,000 cab drivers at Newark Liberty International Airport, delivering faster transaction times and higher driver take-rates.
• Newtek Payments Security & PCI Compliance PCI DSS compliance assistance through partnership with Clover Security, including self-assessment questionnaires, vulnerability scanning, security policies, and security awareness training. Breach Protection Program underwritten by Royal Group Services provides indemnification up to $100,000 per incident per merchant account.
• Newtek Payments Zero Cost Processing Zero-fee credit card processing solution that displays two prices at the point of sale, allowing customers to choose between card and cash payments. Designed for high-ticket, service provider, low-ticket, and low-margin industries.
• Newtek Payments Ecommerce Integration Ecommerce payment solution offering instant merchant account approval, robust payment gateway, website design and marketing packages, and 24/7 US-based monitoring and support for secure online commerce.

Quantifiable outcome

• 11% efficiency improvement in payroll processing for a large financing company client
• +5 more outcomes

Named customers5 records

Segments5 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration9 records

Feature8 records

Partnerships

Five partnerships are on record, tiered core.

• 1-800AccountantcoreStrategic or Co-development PartnerNewtekOne partnered with 1-800Accountant to offer specialized accounting and tax services to small businesses, including business formation, bookkeeping, tax preparation, audit defense, and tax advisory. Services are delivered through a proprietary platform with dedicated CPAs and bookkeepers. This partnership enables NewtekOne to offer accounting services without operating its own accounting practice.
• Intelligent Protection Management Corp. (IPM)coreTechnology or IntegrationIPM powers NewtekOne's technology division including cloud desktops, servers, managed IT, security and compliance, website security, cloud migration, ecommerce solutions, and business software hosting. IPM operates tier-3 data centers in Phoenix and New Jersey and has over three decades of experience. All technology services on newtekone.com are delivered through this partnership, with IPM staff providing 24/7/365 U.S.-based support.
• Clover SecuritycoreTechnology or IntegrationNewtekOne partnered with Clover Security to help merchants become PCI DSS compliant through a suite of tools including self-assessment questionnaires, vulnerability scanning, security policies, and security awareness training. All NewtekOne merchants are required to validate PCI compliance through this program.
• Royal Group ServicescoreTechnology or IntegrationRoyal Group Services collaborates with Lockton Companies Inc. to underwrite NewtekOne's Breach Protection Program, providing indemnification up to $100,000 per incident per merchant account for data breaches, covering forensic audits, card replacement costs, and related expenses. Level 2, 3, and 4 merchant accounts are eligible.
• Financial Institutions (Banks & Credit Unions)coreChannel Partner/ Reseller/ DistributorBanks and credit unions partner with NewtekOne through the Business Lender Program (outsourcing/referrals), Business Solutions Program (payment processing, payroll, insurance), Branch Cash Advance, and Lender-Placed Insurance. Partners earn referral fees on closed business at no cost to their institution and maintain the banking relationship with the borrower rather than losing the client to a competing bank.

Scale indicators8 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Block (Square): Block's Square is the leading SMB payment processing and POS platform in the U.S., offering card acceptance, POS hardware, lending (Square Capital), banking, and software — the closest end-to-end competitor to Newtek Merchant Solutions' integrated SMB stack.
• Toast: Toast is a restaurant-focused POS and payment processing platform that competes directly with Newtek Payment Systems' restaurant vertical, including kitchen display, QR ordering, and food delivery integrations.
• Stripe: Stripe is a leading online payment processor serving SMBs and enterprises with API-based payment gateway and processing — directly comparable to Newtek Gateway's RESTful/SOAP API and ecommerce integration offerings.
• Stax (formerly Fattmerchant): Stax is a subscription-based payment processor targeting SMBs with flat-rate pricing and integrated POS — closely comparable to Newtek Merchant Solutions' SMB positioning and zero-cost processing product.
• Helcim: Helcim provides SMB payment processing with interchange-plus pricing and integrated merchant services — directly comparable to Newtek's merchant acquiring and gateway offerings for small businesses.
• North American Bancard: North American Bancard is a privately-held SMB payment processor and ISO offering card-present and card-not-present processing — a similarly scaled U.S. competitor to Newtek Merchant Solutions.

Broad incumbents

• Fiserv (Clover): Fiserv operates Clover, a major SMB POS and merchant acquiring platform, and is one of the largest U.S. merchant acquirers. Clover is directly offered through Newtek Payments, making Fiserv both a partner and a competitive incumbent.
• Heartland Payment Systems (Global Payments): Heartland, now part of Global Payments, is a major U.S. SMB payment processor and acquirer serving similar retail, restaurant, and service-business verticals as Newtek Merchant Solutions.

Emerging players

• Lightspeed Commerce: Lightspeed provides cloud-based POS and payment processing for retail and restaurant SMBs with integrated ecommerce — comparable to Newtek Payment Systems' omni-channel POS across multiple verticals.
• Gusto: Gusto is a leading SMB payroll, HR, and benefits platform. While Newtek Payroll and Newtek Insurance overlap with Gusto's core offering, Gusto is increasingly bundling payments-adjacent services, making it an adjacent competitor in the integrated SMB services category.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/user/NewtekOne
• Facebookfacebook.com/NewtekOne
• LinkedInlinkedin.com/company/newtekone

Compliance8 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Subsidiaries12 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Newtek Merchant Solutions