Strategic Payment Systems
Strategic Payment Systems, Inc., operating as Payroc, is a privately held U.S. Independent Sales Organization founded in 1986, headquartered in Foxborough, MA, providing credit/debit, ACH, mobile, internet, gift/loyalty, and check payment processing to SMB merchants through ISO, affiliate, and portfolio acquisition channels under Wells Fargo and Fifth Third Bank sponsorship.
- Company typePrivate
- Founded1986
- HeadquartersCanton, United States
- Headcount1–10
- GTM typeB2B
- OfferingServices
What Strategic Payment Systems does
Strategic Payment Systems, Inc. (SPS), founded in 1986 and now operating under the Payroc brand, is a privately held, founder-led Independent Sales Organization (ISO) and Member Service Provider headquartered in Foxborough, Massachusetts with an additional office in Westbury, New York. The company is registered as an ISO of Wells Fargo Bank, N.A. and as an ISO/MPS of Fifth Third Bank, N.A., operating under those banks' regulatory sponsorship to deliver merchant acquiring services across the United States, with marketing language emphasizing the Northeast and New England regions.
The company delivers a full-stack merchant services platform spanning credit and debit card processing, gift and loyalty card programs, mobile and internet processing, ACH processing for recurring billing, electronic check services (including CHECK21 and bad-check recovery), short-term merchant cash advances against card deposits, and a distinctive Merchant eMall marketplace. Underlying processing is integrated with multiple sponsor processors and gateways including WorldPay (Vantiv/NPC), First Data, Gulf Management, PAYA/GETI/SAGE, Authorize.net, Network Merchants, and Dejavoo, while American Express acceptance is offered subject to separate approval. Adjacent offerings include Free Statement Analysis, an SPS Low Cost Guarantee (price match or $100 to the merchant), and Business Valuation Services delivered via partnership with BizEquity.
SPS makes money primarily through transaction-based payment processing fees on the merchant side, plus revenue share with its partner ecosystem. Its go-to-market is overwhelmingly indirect: an Agent/ISO Sales Partner Program with a transparent revenue-passthrough profit-share, an Affiliate Referral Program targeting financial institutions, associations, accounting firms, and chambers of commerce, and a Portfolio Acquisitions program purchasing merchant residual portfolios at premium multiples. Direct merchant acquisition is supported via the corporate website and a toll-free contact center. The company is privately held with no disclosed institutional investment and is led by Chairman & CEO Rick Pylant and President Jon Stevens, both long-tenured industry operators and founding members of CoCard.
Strategic Payment Systems firmographics
Firmographics- Name
- Strategic Payment Systems
- Legal name
- Strategic Payment Systems, Inc.
- Website
- https://spsprocessing.net
- Company type
- Private
- Founded year
- 1986
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Strategic Payment Systems, Inc., operating as Payroc, is a privately held U.S. Independent Sales Organization founded in 1986, headquartered in Foxborough, MA, providing credit/debit, ACH, mobile, internet, gift/loyalty, and check payment processing to SMB merchants through ISO, affiliate, and portfolio acquisition channels under Wells Fargo and Fifth Third Bank sponsorship.
- Ownership category
- akta.pro rank
Strategic Payment Systems industry classification
Industry- Product category
- Payment Processing Services
- NAICS
- Sales Financing (52222), Other Nondepository Credit Intermediation (52229)
- SIC
- Miscellaneous Business Credit Institution (6159)
- akta.pro primary industry
- Integrated Payment Processors (PSP/Acquirer) (FSAMABAA)
- akta.pro secondary industry
- Integrated POS Payments (ISVs & Vertical POS Platforms) (FSAMADAD)
Keywords
Where Strategic Payment Systems is headquartered
LocationHeadquarters
- HQ city
- Canton
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
Strategic Payment Systems business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure
Revenue model
- Payment Processing Services: Transaction-based revenue from credit card, debit, EBT, fleet card processing for merchants. Revenue generated through processing fees per transaction.
- Affiliate Referral Revenue Share: Partners (financial institutions, associations, accounting firms, chambers of commerce) earn straight percent of overall profit from referred merchant accounts rather than basis points, leads, or applications only.
- Agent/ISO Partnership Revenue: Sales partners and ISOs earn revenue through the company's transparent revenue passthrough program for merchant accounts they bring to the platform.
- Additional Services: Revenue from gift/loyalty cards, mobile processing, internet processing, check services, ACH processing, cash advances, and business valuation services.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Monthly | Credit Card Processing - quote-based pricing |
| Other | Monthly | Affiliate Program - profit percentage sharing |
| Unit Pricing | Pay-as-you-go | Gift & Loyalty Cards - starter packages to full custom systems |
| Usage-based | Pay-as-you-go | ACH Processing - low cost alternative to credit cards |
Go-to-market motion1 record
Distribution channels5 records
Marketing channels5 records
Strategic Payment Systems product offering
Product offeringCore offering
Strategic Payment Systems (SPS) is a full-service payment processing provider offering credit and debit card processing, gift and loyalty card programs, mobile processing, internet/e-commerce processing, electronic check services, ACH processing, and merchant cash advances to merchants of all sizes. Operating as a registered ISO of Wells Fargo Bank and Fifth Third Bank, SPS distributes primarily through an Agent/ISO partner network and an Affiliate Referral Program for financial institutions, associations, and professional firms, supplemented by direct merchant acquisition via its website.
Product overview
Strategic Payment Systems (SPS) is a full-service payment processing provider offering a unified portfolio of merchant services. The core platform centers on Credit Card Processing, supported by additional payment capabilities including Gift & Loyalty Card programs, Mobile Processing, Internet Processing (with echeck and fraud protection), Merchant eMall marketplace, Check Services (including CHECK21 and bad check recovery), Cash Advance financing, and ACH processing for recurring billing. The offering extends through value-added modules including Free Statement Analysis, the SPS Low Cost Guarantee price-matching program, merchant account application services, Portfolio Acquisitions for ISO partners, Agent/ISO Sales Partner Programs, Affiliate Referral Programs, and Business Valuation Services via BizEquity partnership. SPS also provides free web utility tools (IP lookup, QR generator, URL shortener) for merchant use.
Differentiator
Problem solved
Functional benefit
Products and services
- Credit Card Processing State of the art credit and debit card processing solutions for any merchant type, style of processing, size or system, priced at the lowest possible cost with a Low Cost Guarantee.
- Gift & Loyalty Card Program Gift and loyalty card program setup services for merchants, ranging from easy cost-effective starter packages up to fully custom card systems.
- Mobile Processing Full range of mobile payment processing options including smartphone applications, personal computer systems, and standalone full-feature terminals for merchants accepting payments on the go.
- Internet Processing Website payment processing including traditional credit/debit processing, echeck, and various fraud protection tools for e-commerce merchants.
- Merchant eMall Industry-unique platform that allows merchants to shop for business supplies and merchandise and to become merchants in the mall to sell their own products or services.
- Check Services Electronic check guarantee/deposit program, bad check recovery products, and CHECK21 processing designed to eliminate check handling and collection issues for merchants.
- Cash Advance Short-term financing service that allows merchants to qualify based on their credit card deposits as an asset, providing working capital against processing volumes.
- ACH Processing Low-cost ACH alternative to credit card processing for repetitive billing environments such as health clubs, tanning salons, and property management companies.
- Business Valuation Services Business valuation services offered to merchants through a partnership with BizEquity, a large-scale provider of business valuations.
- Portfolio Acquisitions Purchase of existing merchant processing portfolios from ISOs and resellers at premium multiples, positioning SPS as a long-term financial partner for the portfolios it acquires.
Companies that use Strategic Payment Systems
Customer profileSegments5 records
Ideal customer profiles3 records
Strategic Payment Systems technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration8 records
Feature3 records
Strategic Payment Systems partnerships and signals
Strategic signalPartnerships
Three partnerships are on record, tiered core.
- Wells Fargo Bank, N.A.coreSPS is a registered ISO (Independent Sales Organization) of Wells Fargo Bank, N.A., Concord, CA. This banking partnership enables SPS to offer payment processing services under Wells Fargo's regulatory umbrella.
- Fifth Third Bank, N.A.coreSPS is a registered ISO/MPS (Member Service Provider) of Fifth Third Bank, N.A., Cincinnati, OH 45263. This dual banking relationship provides flexibility in payment processing services.
- PayroccorePayroc (formerly Strategic Payment Systems, Inc.) - appears to be a rebranding/reorganization where SPS operations have been integrated into Payroc. The main office and New York office are now listed as Payroc locations.
Scale indicators2 records
Recent moves6 records
Expansion highlights4 records
Strategic Payment Systems competitors and assessment
Company assessmentBroad incumbents
- Fiserv: Fiserv (parent of First Data/Clover) is a broad incumbent in merchant acquiring and POS software. SPS integrates with First Data for processing and 24/7 support, and competes in the same SMB merchant acquiring market.
- Global Payments: Global Payments (now owning Heartland) is a broad incumbent in merchant acquiring and ISO processing. SPS's agent/ISO program and merchant services overlap directly with Heartland/Global Payments' SMB offerings.
- Square (Block): Block / Square is a broad incumbent in SMB payment processing offering hardware, software, and processing directly to merchants. SPS competes with Square for the same SMB merchant and competes against Square for the same ISO-affiliated agents.
- Stripe: Stripe is a broad incumbent in internet/online payment processing. SPS's Internet Processing product directly overlaps with Stripe's core offering to merchants and ISVs.
Direct peers
- Payroc: Payroc is the rebranded parent entity of Strategic Payment Systems. It is a payments platform built on consolidated ISO assets, offering merchant acquiring, POS, and partner programs that directly compete with and subsume the SPS book of business.
- Stax Payments: Stax is an integrated payment processor offering subscription-based and interchange-plus pricing to SMBs and ISOs. Closely comparable to SPS on product (credit/debit processing, partner programs) and target market.
- Payment Depot: Payment Depot is an interchange-plus ISO serving SMB merchants through partner and direct channels. Comparable to SPS on pricing transparency (Low Cost Guarantee vs. Payment Depot's price-beating model) and SMB target market.
- North American Bancard: North American Bancard is an ISO/merchant acquirer with a partner-driven distribution model very similar to SPS's Agent/ISO and Affiliate Programs. It is now part of the broader Payroc platform but historically operated as a near-direct peer.
- Heartland Payment Systems: Heartland is a major ISO-style merchant acquirer focused on SMBs, schools, and restaurants. Comparable to SPS in merchant acquiring, ISO partner model, and full-service payment processing.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks7 records
Key highlights7 records
Customer concentration
Strategic Payment Systems social profiles
Digital presenceStrategic Payment Systems compliance and trust
Trust signalCompliance2 records
Strategic Payment Systems financial estimates
Financial estimateRevenue estimate
Valuation estimate
Strategic Payment Systems leadership team
Management profileNumber of profiles
Profiles3 records
Strategic Payment Systems funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Strategic Payment Systems M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Strategic Payment Systems
What does Strategic Payment Systems do?
Strategic Payment Systems (SPS) is a full-service payment processing provider offering credit and debit card processing, gift and loyalty card programs, mobile processing, internet/e-commerce processing, electronic check services, ACH processing, and merchant cash advances to merchants of all sizes. Operating as a registered ISO of Wells Fargo Bank and Fifth Third Bank, SPS distributes primarily through an Agent/ISO partner network and an Affiliate Referral Program for financial institutions, associations, and professional firms, supplemented by direct merchant acquisition via its website.
Is Strategic Payment Systems a public or private company?
Strategic Payment Systems is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Strategic Payment Systems founded?
Strategic Payment Systems was founded in 1986. It employs 1 to 10 people.
Where is Strategic Payment Systems based?
Strategic Payment Systems is headquartered in Canton, United States, in the North America region.
How does Strategic Payment Systems make money?
Four revenue lines are on record. Payment Processing Services are the primary driver. The others are affiliate Referral Revenue Share, agent/ISO Partnership Revenue and additional Services.
Who are Strategic Payment Systems's main competitors?
Broad incumbents on record are Fiserv, Global Payments, Square (Block) and Stripe. Direct peers are Payroc, Stax Payments, Payment Depot, North American Bancard and Heartland Payment Systems.
Does Strategic Payment Systems have an API?
No public API is recorded for Strategic Payment Systems.
What industry is Strategic Payment Systems in?
Strategic Payment Systems's product category is Payment Processing Services. Its primary akta.pro industry code is FSAMABAA, Integrated Payment Processors (PSP/Acquirer), with a secondary code of FSAMADAD, Integrated POS Payments (ISVs & Vertical POS Platforms). Its NAICS code is 52222 and its SIC code is 6159.