Atlanta-based nCrowd operates in the online daily deal space leveraging the online channel to acquire customers for local merchants. According to Chief Financial Officer Doug Bauer, the company, which was founded in 2013 in Tampa, Fla., quickly determined that in a competitive environment dominated by Groupon and Living Social, the best way to grow the business was through acquisition. The company embarked on a strategy that resulted in acquiring 35 other daily deal sites.
In 2014, Bauer says, those acquisitions began to get larger. And when they gobbled up a U.K. site early that year, nCrowd went international. It was at that point the company began to see the value of a payments processor that ran a single global platform.
nCrowd was with JetPay from the beginning, but when the company made that first international acquisition, the provider that handled the U.K. site’s payments wanted to bid on nCrowd’s processing business. While it was a fairly well-known name and nCrowd took an initial meeting, Bauer says the courtship never even got to the stage where the competitor was able to bid on price.
“We never got through the bidding process because we realized we would have to integrate an entirely new platform,” he explains. “We never had the problem of dealing with multiple platforms that other companies have because, from a technical standpoint, it was virtually impossible the way were structured. We have a mirrored solution. We may be running 25 different brands at once, but they all get the same data. If we were on alternate platforms we could never mirror a site. For us to be able to stay on one platform and be able to propagate into internationally, we had to be able to keep the same processor.”
At the beginning of this year nCrowd took a fresh look at its credit-card processing, Bauer says, in an effort to ensure that they were in the best competitive situation. The company that came the closest to unseating JetPay quoted a slightly lower price per transaction. But, the move would have necessitated migrating from one platform to three—one for Europe, one for Canada and one for the U.S. and the savings on processing fees would have been eclipsed by the integration and duplication required by multiple platforms – all of which are successfully avoided by using JetPay.
“There is no question,” Bauer states. “Right now, it’s completely cost prohibitive to switch.”