Strategic Payment Systems

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.

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

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

• Payment processing services
• Merchant services
• Credit card processing
• ISO partner programs
• ACH payment processing

Headquarters

HQ city

Canton

HQ country

United States

HQ region

North America

Offices2 records

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 Services: Transaction-based revenue from credit card, debit, EBT, fleet card processing for merchants. Revenue generated through processing fees per transaction.
2. 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.
3. 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.
4. Additional Services: Revenue from gift/loyalty cards, mobile processing, internet processing, check services, ACH processing, cash advances, and business valuation services.

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels5 records

Core 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.

Segments5 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration8 records

Feature3 records

Partnerships

Three partnerships are on record, tiered core.

• Wells Fargo Bank, N.A.coreChannel Partner/ Reseller/ DistributorSPS 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.coreChannel Partner/ Reseller/ DistributorSPS 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.
• PayroccoreStrategic or Co-development PartnerPayroc (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

Broad 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

• LinkedInlinkedin.com/company/sps-processing

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 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 Strategic Payment Systems