In this episode of From the Ground Up, John Boitnott was joined by Tad Phelps, CEO at Fintech. He joined Fintech in 2017, at which time the company had already established itself as a trusted name in the alcohol industry. But Phelps didn’t aim to maintain the status quo. He had bigger plans, determined to take a niche leader and turn it into a powerhouse across multiple industries. How? By Listening to clients, embracing innovation, and building a team that can tackle anything.
Fintech, based in Tampa, Florida, started in 1991 with a mission to simplify processes in the highly regulated alcohol industry. Its flagship product, PaymentSource, quickly became a game-changer. It automated alcohol invoice processing, streamlined payments, and provided critical data for over 250,000 retail locations and 5,000 distributors across the U.S. Under Phelps’ leadership, Fintech has evolved into much more than an alcohol-focused company.
Expanding Beyond Alcohol
Brick-and-mortar retailers face ongoing challenges competing with online marketplaces, particularly when it comes to managing costs and inventory. Fintech introduced scan-based trading (SBT) as a solution to these challenges. This system transfers inventory ownership to suppliers until the product is sold, helping retailers cut costs, avoid overstocking, and reduce spoilage risks.
SBT is commonly used for items like bread, milk, and other perishable goods, providing better cash flow and reducing risks for retailers. This system has become a critical tool for businesses looking to stay competitive against online platforms.
Fintech’s expansion into non-alcohol industries began when clients expressed a need for similar invoice processing solutions for all their products. The company responded by creating PaymentSource Premium, which now handles invoices across a variety of retail categories, enabling clients to manage all payments through a single platform.
Navigating Industry Regulations
Operating in the alcohol industry requires careful navigation of complex regulations, including the three-tier system that governs distribution. Fintech’s long history in the industry has positioned it as a trusted partner for businesses dealing with compliance challenges.
The company actively works with regulatory agencies, monitoring changes and ensuring clients are informed and prepared. This proactive approach has helped businesses adapt to evolving rules while maintaining operational efficiency.
Strategic Growth Through Acquisitions
Over the past few years, Fintech has acquired six businesses to strengthen its offerings and address emerging market needs. Among these acquisitions were two companies specializing in scan-based trading. This strategic move allowed Fintech to provide a more comprehensive solution, particularly for products managed through SBT.
The company’s growth has also been supported by partnerships with private equity firms such as TA Associates and General Atlantic. These firms provide financial resources and expertise, enabling Fintech to scale quickly while retaining its entrepreneurial spirit. The company prioritizes partnerships that allow its leadership to operate effectively and maintain its customer-focused approach.
A Team-Driven Approach to Leadership
A strong emphasis on people has been central to Fintech’s success. Phelps believes in building a talented and collaborative team, fostering a culture where ideas thrive and challenges are addressed head-on. The company’s achievements are a reflection of this team-driven philosophy, which has enabled Fintech to innovate and grow in an increasingly competitive market.
The Future of Fintech
Looking ahead, Fintech plans to continue expanding its impact across a wide range of industries. By staying committed to innovation, responding to customer needs, and pursuing strategic growth, the company is poised to remain a leader in retail technology for years to come.
Fintech is redefining how businesses operate, proving that its influence goes far beyond its origins in alcohol. While the company may consider itself “small,” its growing presence in retail and other industries tells a different story.
