Embedded finance is no longer a distant dream. In fact, most of us have already become so accustomed to online payments and using digital wallets, credit cards, and debit cards that carrying paper money has become a hassle. According to McKinsey's market-sizing model, embedded financial service has reached $20 billion in revenues in the United States in 2021 alone and is expected to double within the next three to five years.
Yet, not many software firms understand the potential of integrating payment processing gateways and channel partners to increase their wallet share. It seems merely a convenience or a fancy upgrade, but as you learn more about its features and benefits, you realize how such partnerships can be a lucrative strategy for your business-to-channel sales, grow revenue, and cut unnecessary expenses.
Read on to learn more about payment processing solutions and partnerships for Independent Software Vendors (ISVs) to improve customer experience, the checkout process, customer retention, and revenue growth.
Benefits of Payment Processing Partnerships
The biggest challenge for ISVs and VARs is keeping up with IT product updates, technical certifications, and PCI compliance. Partnering with a payment processing third-party solution provider resolves these challenges on multiple levels.
Security is the most critical factor for ISVs and VARs. Payment processors tokenize and encrypt financial details and process them after reauthorization from the payee, thus minimizing cyberattacks and fraud risks.
Integrated payments offer merchants a one-stop solution to accept all kinds of digital payments, thus improving the customer checkout experience.
Reduced Payment Processing Fees
Collecting payments via different channels, like checks, costs more in processing fees than digital solutions. With a one-stop shop, you can save a lot of money on processing fees.
Payment processing solution providers like iCheckGateway.com offer developer tools to integrate software applications and e-commerce platforms.
Working with expert solutions providers helps you protect yourself and your clients from system vulnerabilities and work on your product without worrying about payment complications.
A Small Case Study on Payment Partnership for a Software Company
Accelya Group, a leading global provider of technology products and services in the airline industry, leveraged the partnership with Mastercard to offer end-to-end payment solutions to its clients.
For five years, Accelya Group struggled with offering their clients a 100% seamless checkout experience. While they optimized their middle and back-end of the payment flow, they still lacked 5% without a payment gateway, leading to several missed opportunities.
Partnering with Mastercard enabled them to offer end-to-end payment solutions to their clients with industry-specific add-ons and plug-ins. The company signed three new contracts within the first six months.
While you may have the best tech products for your clients in your industry, partnering with a payment processing solution provider enables you to offer a unique, robust, and scalable payment infrastructure to your clients as per their needs.
Types of Payment Solutions
There's no one-size-fits-all solution for all businesses. However, as an independent software vendor, you can offer a variety of payment solutions to your clients so they can make informed decisions.
Hosted payment gateways offer a PCI-Compliant, secure channel to accept both debit and credit card transactions and ACH payments online, offering a seamless customer experience.
Many solution providers like iCheckGateway.com customize it for their partner's needs and allow branding opportunities to maintain consistency throughout.
60% of customers prefer self-service technology over assistance from human beings. IVR enables customers to make payments over the phone using their touch-tone or mobile phone. The technology supports both ACH and credit card payments.
Automated Clearing House (ACH) processing, an underrated EFT (electronic fund transfers), along with Remote Deposit Capture (RDC), directly transfers funds from one account to another making the collection process efficient and secure.
Credit Card Processing
Credit and debit card transactions are the most popular methods of payment; thus integrating credit card processing into their model becomes a top priority for merchants.
Email invoicing automates and streamlines the invoicing process allowing companies to accept ACH and credit card payments through invoices. Additionally, one can send single invoices or set up recurring billing statements.
Through virtual terminals, businesses can accept ACH and credit card transactions using any internet-enabled management system, eliminating the need to install additional software.
For subscription-based service providers and SaaS companies, recurring payments automate invoice generation and distribution and mitigate the risk of missed payments.
Best Practices for Lasting Partnerships
A simple search can give you a list of hundreds of payment processing solution providers, but how do you decide on the right payment partner for your business? Look for additional advantages that your partners can offer beyond traditional software-based income streams, for instance:
- Customer Support
- Reduced PCI Scope
- Industry Experience
- Seamless Integration
- Multiple Payment Options
- Nacha-Preferred Partners
A quick step-by-step guideline for software companies:
- Identify your goals
- List down your potential partners
- Create mutually beneficial incentive-driven agreements
- Reach out
- Help with onboarding
- Analyze and track your partnership projections, make changes, and iterate
While deciding on partnering with payment processing solution providers, you can consider three types of partnerships:
- Strategic Partnerships
- Channel Partnerships
- Tech Partnerships
Partner with iCG
Multi-billion dollar technology companies like Shopify, MailChimp, and Microsoft are already leveraging partnerships to increase wallet share and offer subpar customer experience and satisfaction to their customers. It's time you partner with payment processing companies to maximize your revenue.
Partner with iCheckgateway.com, a Nacha-Preferred Partner with a diverse experience in the industry to explore new markets, create an extension of your team, and streamline your business operations to offer better solutions to your customers. Open more sales opportunities for your business with secured, updated, modern solutions that your clients would love. Contact us to join our Partner Program.