What Secure Payment Solutions does

Secure Payment Solutions (SPS) is a privately held credit card processing and merchant services company headquartered in Tyler, Texas, founded in 2005 by owners Jeh Holsomback and Jesse Memmel. The company operates as a registered Independent Sales Organization (ISO) of Wells Fargo Bank N.A. and Fifth Third Bank N.A., and as a registered DBA of EPX (an ISO of BMO Harris Bank, Fresno First Bank, and Citizens Bank), providing it with redundant processing infrastructure across major U.S. banking partners. SPS processes over $1 billion in annual transaction volume for SMB merchants across retail, restaurant, B2B, and e-commerce segments, with a horizontal segmentation approach and no disclosed enterprise anchor customers.

The company's core product portfolio includes proprietary Reef Suite products (Reef Pay gateway, Reef Terminal, Reef Register, and Reef POS) that form an integrated omnichannel payments ecosystem, alongside a partnership-distributed Paradise POS iPad-based system and equipment offerings from Dejavoo and PAX. Revenue is generated through transaction-based percentage fees on payment processing, equipment sales and leasing, merchant cash advances of $5,000 to $500,000 with daily repayment via credit card sales, PCI DSS compliance subscriptions delivered in partnership with PCI Compliance LLC, and residual income shared with independent sales agents. The 50x merchant residual buyout program is a distinctive channel acquisition mechanism that enables SPS to absorb ISO portfolios at industry-leading multiples.

SPS distributes primarily through an indirect channel model of independent sales agents (ISOs) supported by direct merchant field sales and 24/7 in-house customer service. The company emphasizes rate stability guarantees, transparent pricing, and people-over-profit positioning to differentiate from larger payment processors. With 11-50 employees, no disclosed external funding, and active operations evidenced by 2024 copyright notice and ongoing blog content, SPS operates as a stable, founder-controlled mid-market ISO with an established but limited geographic footprint confined to the United States.

Name

Secure Payment Solutions

Legal name

Secure Payment Solutions, Inc.

Website

https://spscards.net

Company type

Private

Founded year

2005

Operating status

Operating

Headcount range

11–50 employees

Short description

Secure Payment Solutions is a privately held credit card processing and merchant services ISO headquartered in Tyler, Texas, serving SMB merchants across retail, restaurant, B2B, and e-commerce segments through its proprietary Reef Suite, Paradise POS partnership, and a nationwide independent sales agent network.

Ownership category

akta.pro rank

Product category

Merchant Services / Payment Processing

NAICS

Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320)

akta.pro primary industry

Integrated Payment Processors (PSP/Acquirer) (FSAMABAA)

akta.pro secondary industries

Merchant Payment Gateways (API/Hosted Checkout) (FSAMACAA), Recurring Billing, Subscriptions & Tokenized Payments (CRAFALAH), Payment Reconciliation, Reporting & Settlement Infrastructure (FSAGABAH)

Keywords

• Credit card processing
• Merchant services
• Payment processing
• POS systems
• Merchant cash advance

Headquarters

HQ city

Tyler

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

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

Revenue model

1. Payment Processing Transaction Fees: SPS earns revenue through transaction/percentage fees charged on credit card processing transactions. Merchants pay rates negotiated based on their account characteristics and transaction volume.
2. Merchant Cash Advance Origination: SPS provides unsecured cash advances of $5,000 to $500,000 to merchants based on future credit card sales. Repayment occurs through small percentage of daily CC sales automatically applied until the advance is repaid.
3. Equipment Sales and Leasing: SPS sells and provides payment terminals and POS equipment including countertop terminals, wireless terminals, and iPad POS systems. First-time customers receive free programmed terminals.
4. Agent Residual Income: Sales agents earn upfront cash incentives plus long-term residual income from merchant accounts they onboard. SPS offers industry-leading 50x residual buyout program for portfolio acquisitions.
5. PCI Compliance Services: SPS partners with PCI Compliance, LLC to provide PCI DSS compliance services including Self-Assessment Questionnaires and quarterly security scans at reduced costs for merchants.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels5 records

Core offering

Secure Payment Solutions is a registered Independent Sales Organization that provides credit and debit card processing services to small and mid-sized U.S. merchants, bundled with payment terminals (Dejavoo, PAX), proprietary POS software (Reef suite and Paradise POS), merchant cash advances ($5,000–$500,000), PCI DSS compliance support, and cash discount programs. The company also operates a sales partner / ISO program offering residuals and a 50x merchant residual buyout.

Product overview

Secure Payment Solutions is a payment processing and merchant services company offering a unified portfolio of products and services for businesses accepting electronic payments. The core offering centers on credit card processing with multiple POS solutions: Paradise POS (iPad-based system for retail and restaurants) and the proprietary Reef suite (Reef POS, Reef Terminal, Reef Register, and Reef Pay gateway) functioning as an integrated omnichannel payments ecosystem. Equipment offerings include countertop and wireless terminals from PAX and Dejavoo. Additional services encompass merchant cash advances ($5K-$500K), PCI compliance support, cash discount programs, and a sales partner program with industry-leading 50x residual buyout.

Differentiator

Problem solved

Functional benefit

Brands

• Paradise POS: iPad POS system for retail and restaurant businesses. Enables sales, inventory management, multi-channel sales opportunities including in-store, online, BOPIS, and delivery. Features contactless, EMV, cash discounting, and dual pricing capabilities with real-time data analytics.
• Reef Pay
• Wipeout

Products and services

• Credit Card Processing Core merchant processing service that enables U.S. businesses to accept Visa, MasterCard, Discover, American Express, and debit card payments, with 24-hour funding and 24/7 in-house customer and technical support.
• Paradise POS iPad-based point of sale system for retail and restaurant environments offering inventory management, EMV and contactless payment acceptance, cash discounting, dual pricing, and real-time data analytics with multi-channel sales support including in-store, online, BOPIS, and delivery.
• Reef POS
• Reef Terminal
• Reef Register
• Reef Pay
• Countertop Terminals
• Wireless Terminals
• Merchant Cash Advance
• PCI Compliance Services
• Cash Discount Program (Wipeout)
• Sales Partner Program Independent Sales Organization partner program offering 100% direct processor relationships, upfront cash incentives, uncapped residual income, industry-leading 50x merchant residual buyout, professional training, marketing materials, and 24/7 in-house support to sales agents and ISO partners.

Quantifiable outcome

• Processed over $1 billion in business last year
• +4 more outcomes

Named customers4 records

Segments5 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

Five partnerships are on record, tiered core.

• PCI Compliance, LLCcoreTechnology or IntegrationSPS partners with PCI Compliance, LLC to provide PCI DSS compliance services to merchants including Self-Assessment Questionnaires and quarterly security scans at reduced costs. PCI Compliance, LLC is an Approved Scanning Vendor (ASV), Qualified Security Assessor (QSA), and Payment Application Qualified Security Assessor (PA-QSA).
• Paradise POScoreTechnology or IntegrationParadise POS is an iPad POS system offered through SPS. It provides cloud-based point of sale solution with real-time analytics, multi-channel sales support, and integrated payments including contactless and EMV.
• PAX TechnologycoreTechnology or IntegrationSPS offers PAX payment terminals including the A920 SmartMobile, S920 pocket-sized mobile device, and S80 countertop POS terminal. These terminals support PCI PTS certification, NFC contactless, and various payment types.
• DejavoocoreTechnology or IntegrationSPS offers Dejavoo payment terminals including Z8, Z9, and Z11 models with EMV and NFC contactless capabilities, PCI PTS certification, and various connectivity options.
• EPXcoreTechnology or IntegrationEPX is a registered ISO of BMO Harris Bank, Fresno First Bank, and Citizens Bank through which SPS operates as a registered DBA, providing additional processing infrastructure and merchant services capabilities.

Scale indicators4 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Payment Depot: Payment Depot is a US merchant services provider and ISO that resells credit card processing on interchange-plus pricing. It directly competes with SPS for SMB merchants and independent agents using a similar low-margin, transparent-pricing model.
• Dharma Merchant Services: Dharma is a small-to-mid US payment processor focused on transparent, interchange-plus pricing for SMBs, with an ISO/agent channel. It is a direct competitor in the transparent-pricing niche SPS occupies.
• National Processing: National Processing is a US ISO offering credit card processing, POS, and cash discount programs to SMBs across retail and restaurant. It is closely comparable to SPS in target customer, ISO/agent distribution, and product mix including cash discount.
• PayJunction: PayJunction is a US payment processor and gateway provider with a focus on B2B and SMB merchants, including recurring billing and virtual terminal. It overlaps with SPS in gateway/virtual terminal functionality and merchant profile.
• Stax (formerly Fattmerchant): Stax is a subscription-based payment processor serving SMBs with integrated POS and analytics offerings. It competes head-to-head with SPS for SMB merchants looking for flat-fee or subscription-based processing and a software-plus-payments bundle.

Broad incumbents

• Clover (Fiserv): Clover is a large, established POS-plus-payments platform from Fiserv serving SMBs across retail and restaurant. It competes with SPS's Reef Suite and Paradise POS offerings but at much greater scale and with deeper software ecosystem.
• PayPal / Zettle: PayPal's Zettle (formerly iZettle) is a SMB-focused payments and POS solution, and PayPal broadly is a dominant online and omnichannel processor. Both compete with SPS for SMB payment volume across online and in-person channels.
• Toast: Toast is a leading restaurant-focused POS and payments platform. It directly competes with SPS's restaurant merchant segment and Paradise POS offering, with a much more fully-featured software stack and venture-backed scale.
• Stripe: Stripe is a leading online-first payment processor and fintech infrastructure provider. While SPS's footprint is primarily brick-and-mortar SMB, Stripe competes for the e-commerce portion of SPS's merchant base and is a benchmark for gateway/developer-oriented payments.
• Block (Square): Block's Square is a dominant integrated payments and POS provider for SMBs, offering hardware, software, capital (MCA), and banking products. SPS's Reef Suite, terminals, and MCA offerings compete across most of Square's SMB footprint, though at vastly smaller scale.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/sps_payments

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

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 Secure Payment Solutions