A Guide on Selling Software Solutions to Government Organizations

The U.S. Federal Government spent $6.82 trillion in the 2021 fiscal year. Purchasing goods and services from businesses and other entities was part of this spending budget. Government organizations are some of the largest spenders; therefore, they provide a good opportunity for small businesses to bid for contracts and earn revenue.

Software vendors can win government contracts by selling them one-stop software solutions with payment processing functionalities. Today, most government transactions are processed digitally, and vendors get paid electronically. Consequently, there is a demand for payment solutions that streamline government payment processes. If you run an Independent Software Company (ISV), you have an opportunity to sell your products and services to government institutions with additional payment processing functionalities. But how do you go about it? 

This blog post will guide you on how to approach U.S. government organizations. You’ll get the tips and tricks to sell your payment software, and learn the benefits of partnering with iCG.


Why Do Government Organizations Need Payment Software?

Government organizations prefer getting software solutions with payment processing functionalities to:

Offer Vendor Payments

The Bureau of the Fiscal Service prefers vendor payment processing using electronic funds transfer (EFT). When a vendor provides a service to the Fiscal Service, they must provide electronic payment information and a taxpayer identification number. 

Once they provide these details, the government organization remits the payment. Payment software makes this remittance process much easier for government entities. 

Leverage Recurring Payments

Government agencies process payments for numerous services monthly, quarterly, and annually. They receive several payments, such as:

  • Monthly recurring bills 
  • Annual taxes
  • Permits, fees, fines, and citations that bring in money to the government agencies

They need the right technology to manage all these transactions securely. An ISV can help set up a payment processor for credit or debit card and ACH transactions

Increase Transparency

Government organizations aim to offer excellent transparency to the citizens and internal stakeholders for financial processes. Payment software with virtual terminal solutions helps by providing transparency for all internal employees and external vendors.

Enhance Security

Processed payments are critical in running a well-functioning government organization. Therefore, the money should be safe from fraudsters. Secure payment software offers PCI compliance, tokenization, and end-to-end encryption to keep financial data safe. 


Benefits of New-Gen Payment Software

Government organizations focus on creating seamless customer experiences by combining payments and software. Payment system integration makes it easier for them to process real-time payments. Learn how channel sales partners help with the adoption of real-time payment solutions.

Here are some of the benefits of using this new-gen payment software. 

Download a Full Catalog of Innovative Payment Solutions


How ISVs Can Approach Government Orgs

The federal government signs more than 11 million contracts annually, and ISVs earn revenue from these contracts by approaching government organizations to sell their software solutions. They do this via the U.S. General Services Administration (GSA), the federal government’s acquisition arm. 

ISVs can apply for these contracts using the following steps:

Register the Business

ISVs must first visit SAM.gov to register the business with the U.S. Government. Once registered, the software provider will get notified of new opportunities. 

Find the Necessary Opportunities

SAM.gov offers a comprehensive database of all the contract awards, business, and subcontracting opportunities. Since the ISV deals with payment solutions, it will focus on opportunities in this function.

Prepare to Bid

Federal government services purchase goods and products via the General Services Administration (GSA). To sell payment software, prepare well for bidding.

Submit an Offer

Present the offer to GSA to be considered for the government contract. 


Best Selling Tips and Tricks for ISVs

Government organizations get multiple bids from different companies all year round. To win these contracts, an ISV must be well-prepared with these tricks:

Conduct Market Research

Identify the benefits and need for your software solution before competing for the government contract. Once you determine the demand for the service, you can start bidding.

Certify Your Business

You have a better chance of winning a government contract if your ISV is certified as a small business. The process could take some time; therefore, plan for it in advance.


Teaming up with another software company or subcontracting can get you in the door. Join forces with another company in the same field to gain experience working with the government. Check the GSA directory for companies to consider for partnership. 

Learn how to shorten the application sales cycle.


Benefits of Partnering with iCG

Do you want your ISV to get the immense value it deserves? Partner with iCG, one of America’s most reliable payment processors, to sell your software to the government. Here is how we can help:

  • Gain New Business: Your ISV gets more opportunities to develop relationships with government organizations while iCG provides the necessary payment technology.
  • Secure Payment Methods: As a Nacha-certified partner, iCG keeps data and all transactions safe. Therefore, all credit card and ACH payments go through a secure gateway. 
  • Complementary Payment Solutions: Market your ISV services to government organizations efficiently because you get a wide range of payment solutions, including email invoicing, recurring billing, and hosted payment portals

Become a Partner


The Perfect Opportunity for Your ISV

Government agencies present perfect opportunities for ISVs looking to sell helpful software solutions. ISVs can offer their respective software solutions with one-stop payment processing capabilities by leveraging the backend integration offered by iCG, a Nacha-preferred partner

Shorten the application sales cycle and get government contracts much faster. Partner with us today!

iCG Pay’s innovative solutions help you accelerate payments simply, securely, and reliably.

We help businesses accept and process payments with our suite of next-gen customizable fintech solutions. Our automated technologies help you carry out ACH and credit card transactions on a single easy-to-use platform.