iCapital has acquired PassThrough, a company specializing in credit card surcharge technology, for an undisclosed amount. This strategic purchase brings PassThrough's innovative gateway, which allows merchants to automatically recoup credit card processing fees, under the iCapital umbrella. PassThrough's service became viable following recent rule changes that permit merchants to pass through these transaction costs to customers, addressing a long-standing challenge for businesses.
PassThrough's core offering is a sophisticated gateway that automatically identifies credit card transactions and applies the appropriate surcharge. This functionality enables merchants to recover the full cost of credit card processing, which typically ranges from 3-4% of each purchase. For iCapital, this acquisition represents a significant enhancement to its financial technology portfolio, allowing it to offer a direct solution to a critical merchant pain point related to operational costs.
The integration of PassThrough's specialized technology is expected to create substantial synergies. By incorporating PassThrough's automated surcharge system, iCapital can provide its clients with a more comprehensive and cost-effective payment processing suite. This move is anticipated to strengthen iCapital's market position by offering a unique value proposition that directly impacts merchants' bottom lines, potentially attracting new clients and deepening engagement with existing ones.
Looking ahead, the combined entity is poised to deliver advanced payment solutions that empower businesses to manage transaction expenses more effectively. This acquisition underscores iCapital's commitment to innovation in financial services, aiming to enhance efficiency and profitability for merchants in an evolving payment landscape.