Factors That Affect The Payment Processing Services Globally

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especially for small players, as the barriers of entry remain low, allowing new entrants into an already saturated market. The industry is in the mature phase as revenue growth has decreased from 10.7% in 2014, to 12.1% in 2015, to 4.0% in 2016. Although there are several macro factors that can be considered, there are a few that pertain significantly to Paychex’s payment processing operation. The first macro factor in the general environment that Paychex should consider is the opportunity to expand globally. There is a great need for a payment processing service in emerging markets around the world that Paychex has not yet taken advantage of. This would allow Paychex to increase their client base to foreign markets. Globalization is low in this industry, which is why expanding payment processing services globally would be a remarkable opportunity for Paychex. Extensive laws and regulation could potentially make it difficult for companies to successfully expand into foreign markets. Technology is another macro factor that is imperative to consider. Companies in the payroll and bookkeeping industry heavily rely on cloud, mobile, and software technology to deliver easily accessible products. Investing in SaaS, software as a service, based technology solutions was one of the primary focuses of Paychex in 2015. Adapting and acclimating to technology over time will be imperative to the success of Paychex. The strategic group within the small business segment in
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