Benefits of an Integrated Payments Ecosystem: ISVs, Merchants, and End-Users

Adding an integrated payment solution to your core software platform is a game-changer for ISVs, merchants, and end-users alike. Embedded payments provide additional security assurances within your system, enhance the end user’s billing and checkout experience, and increases the ISV’s core software valuation. 

What is a payments ecosystem?

An ecosystem describes the various technologies and data pathways offered by a payment processor. A payments ecosystem allows the merchant to accept payments in-store or online. 

The benefits of integrated payments

Integrated payment solutions allow software companies to eliminate friction associated with third-party billing platforms and promote efficiency and customer loyalty. 

How integrated payments benefit software companies

Easy to integrate

The use of integrated payments involves layering a hosted payments page, tokenization module and transaction APIs, and other checkout parameters into your system’s payment flow.  By enabling cost-friendly automation and efficiencies to your business process, your operational performance will see significant improvement. It also makes it easy for your platform to collect payments, integrate subscriptions, manage transactions, and customize your reporting needs. 

Generate new revenue streams

Experts expect Software as a Service (SaaS) revenue to reach $369.4 billion by 2024, an increase of nearly $200 billion. ISVs are at the forefront of this explosive growth. When a software company partners with a payment provider to integrate payment acceptance into their platform, they typically become eligible to earn a portion of the payment processing revenue stream (also known as payment residuals).

Top payment providers offer strong revenue-share models on payments collected through your mutual software integration. Accordingly, once a merchant is processing transactions, the revenue stream will be easy to maintain. So long as the merchant continues to make payments within your system, you will continue to receive recurring revenue.

Increase valuation

According to Market Research Future (MRFR), ISVs market valuation will rise from $202.85 million in 2019 to $408.15 million by 2026 (review period 2020-2026). Native payments functionality and the additional revenue streams provided help position your ISV platform for a more attractive bid should you decide to go to market.

How integrated payments benefit merchants

Efficiency and speed to market

A payment tools centered within your core software system eliminates the need to seek out third-party payment options.  This empowers business owners to focus on more important components of a system set up. 

Streamline operations

It’s crucial to evaluate your business’ performance and gain insights through data. A complete payments platform allows merchants to pull payment data, create and pull custom reports, issue invoices via text or email, and check on sales from the cloud. 

How integrated payments benefit end-users 

Seamless user experience 

Customers want an omnichannel experience. Integrated payments allow the customer to pay how they like, whether it’s an invoice delivered to their mobile phone via text message or a card on file through a custom portal for recurring payments.

Improved security

When a customer is redirected to an external payment processor, their sensitive financial data can be compromised. An integrated payments partner ensures all PII and sensitive payment information is safely tokenized and stored within the payment gateway.  

Processors offering end-to-end encryption and sophisticated PCI Level 1 DSS security features will keep your software out of scope of PCI compliance requirements. 

Why are partner ecosystems important for ISVs?

 Payment partner ecosystems are essential to help integrated software companies achieve their business goals and drive new growth opportunities. 

PAYARC’s integrated payments ecosystem was developed with your specific business needs in mind. Our platform helps scale your software’s native payment demands by offering industry-leading revenue shares, robust integration options, and custom merchant onboarding tools. With powerful APIs, real-time payment analytic dashboards, custom reporting, and around-the-clock integrated channel support — you have everything you need to succeed with PAYARC.

To learn more about how we empower you to grow your business, book a meeting with one of our experts.