In the past year, integrated payment technologies have taken the processing industry by storm. According to a report by McKinsey, the integrated payments market reached $20 billion in revenue in the United States alone. It is estimated to double in size within the next three to five years.
While research confirms there is a huge earning potential for software companies that offer embedded payments, nearly half of consumers report having never heard of the term. On the contrary, 31% of respondents stated they can see themselves using an integrated payments feature in the next two years if they can learn more about the technology and its benefits.
Integrating a payments feature into the customer journey is an incredible opportunity for eCommerce companies to automate the checkout experiences.
Partnering with a sophisticated payment processor provides software companies with the ability to offer customers a frictionless checkout experience. Combining white-labeled, embedded payments technology with PCI Level 1 DSS certified processing allows them to guarantee a secure and seamless payment experience.
What is an ISV?
An Independent Software Vendor, commonly known as ISV, is an online B2B platform that hosts an embedded payments. ISV-built software applications are run on almost all backend platforms, like Windows, Linux or Apple. And can range from basic utility applications to enterprise-class business management solutions including CRM and other automation tools.
Software companies can benefit from an integrated payments partner that offers a variety of B2B and consumer services that go beyond payment processing. Research that 85% of customers expect digital payment options for in-person purchases, while nearly 50% believe that contactless payment options are the most important safety feature a business can offer.
What is an integrated ISV partner?
Embedded payments involve a processing company that maintains a direct integration within a software’s core platform. This relationship allows an end-user to complete a payments transaction within the software itself, rather than through an external system.
Added payment automation is beneficial for software companies wanting to improve their workflow and streamline the payments experience for their customers.
5 things to consider when choosing an integrated ISV payments partner
When it comes to deciding on a payments partner, the process can seem overwhelming with so many possibilities to explore. We kept it simple and selected five key considerations for when choosing the right payments partner:
Secure and quick integration
Software companies looking for a payments partner may find the process difficult, especially when evaluating the specific needs for your integration. Your payments partner should offer flexible APIs and SDK, as well as a sandbox so you can test their technology before you commit.
A flexible implementations timeline based on your unique needs should also be offered; there is no such thing as “one size fits all” with a payments integration. Your processing partner should have multiple options for system connectivity and a dedicated implementations team to support your development efforts.
Merchant onboarding support
Merchant onboarding is the process of registering a referred merchant with a payment processing platform so they can accept payments. Savvy payment providers streamline the merchant journey from inquiry to onboarding via automated, pre-built web processes or can provide APIs. This removes the manual friction involved with the more traditional merchant application processes. As a result, merchants can be activated quickly, securely, and safely right from your website.
PAYARC’s innovative use of these different types of technology makes the merchant onboarding process fast and simple. To ensure the highest level of compliance, we keep all payment data safe from cyber threats with our PCI Level 1 DSS platform.
Offer a wide range of payment methods
According to a research report, nearly 90% of ISVs believe the number of payment options they provide directly impacts their customer’s sales. While credit and debit cards are still the most popular form of payment, alternative methods are growing in popularity. Digital wallet players like Apple Pay and Google Pay, as well as various cryptocurrencies, are growing in demand.
A payments partner must be able to offer a variety of payment methods to support ever-changing consumer demands.
Value-packed services and customer support
Adapting to customer expectations in a timely fashion is a challenge many businesses struggle to overcome. According to Salesforce, 66% of customers expect companies to understand their needs and be able to accommodate their preferences.
Your payments partner should offer flexible solutions and real-time insight into payment analytics to keep your customers competitive.
The best partnerships give ISVs the opportunity to monetize the payment residual stream with access to custom revenue share models. Meaningful revenue share agreements outline a volume-driven, tier-based percentage that the ISV partner earns by enabling their B2B customer to accept payments within the ISV’s core system. The opportunity to earn residuals is beneficial for software companies to expand their business and improve the end-user experience.
Transforming the payments process with PAYARC
We’re on a mission to transform the world of payments by offering a best-in-class platform built with our ISV partner and their customers in mind. We hold ourselves to the highest standards with safe and efficient payment options designed to increase revenue, streamline business operations, enhance system productivity, and ensure PCI compliance.
If you’d like to learn more about PAYARC and how we can help your software platform offer state-of-the-art embedded payments, get in touch with us today!