Thomas Priore Says Enthusiasm Common, Endurance Rare in Fintech

Much of the recent talk about the future of fintech companies specializing in payments processing has centered on expanding services to provide a one-stop shop for banking solutions. The benefit to businesses is that they can integrate multiple financial functions through one platform rather than rely on traditional banks for treasury management and a separate provider for payments. Priority has moved beyond talking about the possibilities and now offers a variety of solutions through its unified commerce platform.

Priority CEO Thomas Priore says reaching that point required “endurance” on the part of Priority’s leadership, as well as a focus on finding ways to use innovative technology to benefit clients. While Priority is not a bank, it offers financial solutions for use by businesses of all sizes.

“We've had this vision for payments and banking converging,” Priore said in a recent interview. “Now, we've taken a leadership position in actually executing that reality for our customers. We are now a payments and banking fintech with a very elegant set of financial tools for enterprises of all sizes.”

Priority offers an example of what a fintech company can accomplish by applying technology to solve long-standing challenges for businesses. Thomas Priore said Priority’s expansion of services since its creation also meets the demand for commerce solutions from business owners.

“That's what the expectation is of a modern service provider in payments,” he said, “which demands that that provider become equipped to the nuances of banking. And we haven't seen a lot of our peers respond.”

Priority Is at the Forefront of the Embedded Finance Revolution in Business

Founded in 2005, Priority began as a payments processing company. Over the years, it expanded to include 100% automation for payables, as well as faster methods to pay suppliers and unlocking revenue from cash rewards and early pay discounts.

Priority also offers banking and treasury solutions that give businesses the ability to manage the collection, storage, lending, and sending of money from a single platform. Products such as Passport allow businesses of all sizes to accelerate cash flow, streamline transaction reconciliation, and optimize working capital.

Priority’s merchant services also give businesses one place to manage billing and sales tracking, inventory, customer engagement, and more.

Such embedded financial tools are the future, according to Forbes, which estimates the embedded finance market has already reached $58 billion. The magazine expects an annual growth rate of 29% through 2032. For consumers, these tools provide more convenient ways to manage money. For businesses, they can make operations more efficient, accelerate cash flow, and reduce the complexity of managing cash.

Forbes noted that the rapid growth trajectory of banking solution products is “reflecting a paradigm shift in how consumers and businesses access and use financial products and services. The expansion is a testament to the potential of embedded finance to redefine the financial landscape.”

Priority Emerges as a Leader in Expanding Payments Processing Services

Thomas Priore believes that what Priority offers represents the future for the payments business. Clients now expect more from companies like Priority than they have in the past.

“We believe that the traditional [business model] will evolve toward the dinosaurs,” Thomas Priore said. “The conversation needs to pick up on commerce solutions, which are a blend of acquiring banking and payables delivered in a single experience.”

He added that these types of services are what “operators are going to need.” He also believes that other payments companies may face increased challenges in establishing themselves in this important area. Priority is benefitting from making the decision to enter this area earlier than others.

“I think there's a few different interesting trends that will emerge,” Priore asserted. He pointed out that while the technology to provide merchant services and banking solutions will continue to improve, “The moat around it will get deeper and wider, meaning it'll be much harder to enter and it'll cost you more to get over the threshold. You'll need to be licensed. You will have increased scrutiny, which will make that business segment smaller. The winners will be those that can provide stability and scale.”

Priority has already achieved that stability and scale. The company has earned its status as a licensed money transmitter nationwide. Thomas Priore said Priority maintains a rigorous adherence to security and its auditing processes. Priority has both System and Organization Controls 1 status (which focuses on financial reporting) and SOC 2 status (information security), auditing standards created by the American Institute of Certified Public Accountants. It also maintains HIPAA certification (which demonstrates compliance with the Health Insurance Portability and Accountability Act) and PCI 1 status (the highest level of compliance for companies that process credit card transactions).

Priore observed that more scrutiny of companies to ensure they’re compliant is something that “seems clear and is already accelerating.” He said while many businesses have expressed “enthusiasm” around offering both B2B and commercial payments systems, that doesn’t always translate into success.

”I'm going to use a phrase that I like,” he said. “Enthusiasm is common. Endurance is rare.”