Empower the worldwide payments industry with software and services designed for humans. Solve productivity, security and other daily challenges of banks, processors, industry and consumers.
Since 1993, Formula founders, David and Michael McMackin, have directed, co–managed or served strategic partnerships with payment industry leaders such as Bank of America, Chase Paymentech, First Data, Global Payments, and Wells Fargo.
While acquiring merchants in 50 states for banks and processors, the McMackins developed a software platform to support their private merchant service marketing and management companies. The software tools have been pilot and beta–tested during a real–world, multi–industry transaction volume of approximately $22 billion.
In 2011, a New York–based private equity firm committed $300 million ($100m equity + $200m leverage) to the McMackins for the purpose of acquiring merchant service companies and portfolios. While performing due diligence on scores of acquisition candidates, David and Michael discovered a more promising opportunity: exit the merchant acquisition space and commercialize their software platform for the global payments industry.
MULTI-TRILLION INDUSTRY — ANALOG to DIGITAL
Globally, banks handled $410 trillion in noncash transactions in 2013, more than five times the amount of global GDP. Payments revenues will reach an estimated $2.1 trillion in 2023.* Payment systems, platforms and technologies are multiplying. Traditional systems and disruptive new technologies share similar challenges. Enabling technologies that promote unification do not exist. Processors openly acknowledge the need for a unified solution.
The payments industry is void of tailored software products designed to meet its distinctive sales and operations needs and hierarchical partner–based business model. Inherent business challenges of managing large-scale sales teams and complex merchant account portfolios have never been addressed.
Formula’s team has learned through discussions with banks, processors and resellers, the major source of business pain in the payments industry is the number of disparate processor legacy systems each processor employs — home-grown and outdated, usually requiring expensive integration for launching new products and services. Formula is dedicated to relieving this pain.
In 2015, Formula, Inc. was formed to refine and market the first enterprise and sales engine software suite for the payments industry. A fully-automated and integrated enterprise management and business intelligence platform, Formula will help industry players worldwide re–position when needed, grow and succeed beyond current limitations.
SOME INSIDE BASEBALL
Formula offers a market differentiator for banks, processors and resellers. The technology toolset solves complex issues, while creating a durable market advantage for industry clients. Now, the relationship between all industry tiers can be significantly enhanced, eliminating communication gaps among banks, processors, resellers, and merchant customers.
The Formula platform is suitable and scalable to support virtually any business model requiring automated management of enterprise-level data, workflow, and hard or soft assets. However, its native tools have been optimally developed to support sales, production, customer, and human capital-intensive business models, as well as those involving complex underwriting, on-boarding and escalation–based customer service assignments. In this capacity, Formula offers uniquely valuable, wholly–integrated ease of use other commercially available Enterprise Resource Planning (ERP) and sales systems do not.
POWER & BUILD
Formula will first help power bank and payment processing sales and reseller teams with software “built for humans”. Formula will help banks and processors improve profit margins in the low-margin payment processing industry — both by improving their own business performance and by improving the performance of bank and processor clients.
Globally, payment platforms and technologies require sales teams and re-sellers to serve industry clients (merchants, corporations, nonprofits, governments and individuals). Formula will deliver these industry clients an integrated set of tools (initially deployed through processors / banks) to cultivate a rich processor–industry relationship.
Payment processing is the final function of the payments industry. The first, and often neglected functions are marketing & sales — introducing merchants to new and improved products — and servicing those merchants for years, sometimes decades. Formula is skilled in the long sequence of merchant client relationship consultation and management actions before and after payments are transacted. Resolving complex relationship, management and technology issues in the ultra–competitive payments industry supply chain has been a specialty of Formula’s founding team — a core competence now built into Formula.
Companies in other industries — particularly sales and service–centric enterprises — have inquired about adapting Formula's software platform to help build their businesses. Formula may pursue other business verticals after adoption by the payments industry. Sales and human capital intensive verticals — such as automotive retailing, education, financial services, insurance, pharmaceutical sales, residential real estate, recruitment and b2b software, are just a sampling of industries that can amplify performance with Formula.
Due to its original presence within the risk and security–intensive merchant services industry, the Formula backbone has been specially fortified with proven security architecture and firewall protection superior to most other commercial Enterprise Resource Planning (ERP) products.
HOW MAY WE HELP YOU?
The payments industry is uniquely positioned to deliver business performance technologies to numerous marketplace verticals; before doing so, first, the industry needs help closing its own performance gaps. Formula will be a leader in solving both challenges. We welcome discussions about how to help you power and build your payments enterprise or commercial organization.