Is MCA still new? | unbanked

By on July 19, 2022 0


Recently, I had the pleasure of hearing someone tell me that they were happy to get into the MCA industry when it was still very new. While I appreciated the irony given that this is an industry that has been around for over 20 years, it prompted me to look back to understand why anyone might really believe this. For one thing, industry insiders predicted long ago that the product would lead to new regulations. They were right, but they were only 17, literally. In 2022, the new regulations imagined in 2005 FINALLY begin to become reality. Maybe it’s still brand new?

But more ironic than that was how certain some people were that the industry had already matured 15 years ago, that it peaked in 2007. The story was that MCA was a legacy product born from the dotcom bubble of 2001 that never had a lasting future and that 2009 and beyond would usher in the era of in-person sales for what would be left of those who didn’t change careers. Computers weren’t even considered in the vision.

Apparently, change and adoption can be slow, but some products, if they meet a need, are sustainable. Below are some quotes I pulled from the early years from various places. I hope you enjoy them:

“The merchant cash advance industry is growing at an astonishing rate.” – October 2005

“The merchant cash advance industry is only two years old at most.” – June 2007

“Once our divisions are compatible with First Data, that means we win. We will have conquered the merchant cash advance space. – July 2007

“Merchant cash advance space is just a fad.” – August 2007

“I think the [merchant cash advance boat] came and went and I missed it” – August 2007

“The cash advance industry is going through the tech bubble phase” – November 2007

“The merchant cash advance industry has grown too big…” – February 2008

Cash advance is clearly a growing trend in the payments industry. But, down the road, will cash advance reach a saturation point at which the value proposition to ISOs and MLSs will not be more of a winning proposition?” – February 2008

“The days of call centers, phone/fax calls and mailshots are over and the days of face-to-face meetings and greetings with merchants are over” – March 2009

“[Merchant cash advances] are certainly not going to grow as people had hoped, and it will be very rare to find a company like mine that really makes money or builds its future around this product. – November 2009

Last modification : July 19, 2022






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