How to Bridge the Gap Between the Platform and the Merchant
It's a great time to be a software entrepreneur. Now more than ever businesses are utilizing software solutions to simplify their operations. If there is a niche in a market to fill, from managing events like festivals to mobile order-ahead for restaurants - there is an opportunity to create a solution.
For a software business, offering software solutions that can accept payments is an excellent opportunity to differentiate your platform and earn a larger share of the customers in your specific market, plus earn extra revenue on the side.
A software platform offering payment processing capabilities becomes an Independent Software Vendor (ISV), providing their customers with everything they need to run their business, neatly packaged in one bundle.
What Does An ISV Solution Mean For A Customer?
Take the mobile order-ahead solution, for example. A potential customer operates a chain of the hottest taco stands in the city, with a line-up always wrapping around the block. They want to expand and simplify things but are unsure of the best route to take.
The customer wants a way that people can order from their menu online, make a payment, and pick up their order in-store. They don’t want to fuss around with integrations and want to know that the payments made are secure, and will be settled quickly.
This is where the ISV solution comes in. If an ISV can offer a unique solution that is easy to sign up for and provides the right payment experience to drive sales, it becomes an easy choice for the merchant.
So how does an ISV go about choosing the right payments partner for their platform?
Choosing A Partner In Payments
To make a platform stand out to customers, ISVs should look at payments partners who can help them integrate payments as seamlessly as possible. The ISVs customers need to be able to process payments with ease, with the effective fraud defense tools and the support to help fight fraud attacks like chargebacks.
A payment partner that can offer the full payments lifecycle, from digital onboarding, secure and simple APIs, and the ability to process, settle, and report on the payment in a single integration is key. Furthermore, flexibility such as a bank agnostic payment gateways provides plenty of options for customers as they can connect to virtually any acquiring bank in North America.
Not only does a bank agnostic gateway mean flexibility for customers by not having to switch their existing banking relationships, but it also saves the ISV from having to integrate to multiple payment processors to provide the same solution.
There also needs to be a wide range of payment types available. Customers need to be able to accept all the big card types, as well as locally adopted payment methods. These methods could include debit solutions or digital wallets, which are both becoming increasingly more prevalent.
A payment processor that is always up-to-date on the preferred payment types of consumers means happy customers for an ISV.
When picking a payments partner, ISVs look at not only the benefits for their customers but also the benefits for their business.
Added Benefits For An ISV
Boarding new accounts all the time is great for business, but it also brings with it added risk for your software business. What happens if one of your customers is a victim of fraud, or goes bankrupt, who is on the hook?
When choosing a payment partner, it is crucial to understand who takes on the risk. Do you want to be financially liable for your customers? Maybe, but it shouldn’t be a surprise in the event something happens.
Partnering with a payment provider who can underwrite customers accounts can shift the financial liability onto the payment provider. Because risk underwriting is not an industry-wide practice, it can make the difference when deciding upon a payment provider.
Another one of the added benefits for an ISV partnering with a payment provider is the opportunity to be part of the revenue sharing program. When an ISV introduces new clients to the payment processor, they can share a portion of the revenue when a client transacts. Revenue sharing is still unique in the industry, so make sure to look for this as a new revenue source.
For an ISV, it is essential to make an informed decision when it comes to choosing a payment partner. Value adds such as merchant account underwriting, risk management, and revenue sharing can be powerful differentiators when comparing payment providers.
If what you have read sounds intriguing, or you want to learn more about what payment options are the right fit for your business, our payments experts are ready to help.