Ethernet service provider MegaPath last week announced that it is acquiring IP Merchant Solutions, a company focused on connectivity for credit card processors. MegaPath is in the process of creating an extranet service based on a multi-protocol, label-switching, virtual private network that will be dedicated to payment processing for retail and restaurant firms. MegaPath can pledge more efficient credit card processing for retailers that presently see processing delays while purchase information travels over the network.
MegaPath has offered connectivity in partnership with IP Merchant Solutions in the past, but buying the company will make service support even more efficient and will give the service provider closer ties to a particular market segment. With the Ethernet provider market now so competitive, other service providers might want to keep similar strategies in mind.
- check out this report at Telephony
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