Most organizations get into strategic partnerships to boost the company’s successful efforts. Partner programs are standard in every industry as a means to improve a company’s revenue. 54% of companies in business-to-business partnerships state that these programs generate about 20% of their company’s total revenue.
If you run an Independent Sales Organization (ISO), then you need a payment processing partnership to help you deliver better customer service. Most integrated payment partnerships come with attractive incentive benefits and are an essential strategy if you are looking to cut down company expenses.
This blog post looks at the impact of payment partnerships on a company’s bottom line and the key factors that ISOs should consider when choosing a partner.
The Impact of Payment Processing on the Company’s Bottom Line
If you receive customer payments, then you need to invest in payment processing technologies. Here are some of the ways these can affect your bottom line:
Potential for Increased Revenue
Payment processing provides a means to have faster payments. You can give merchants payment processing technologies that make it easier to accept multiple forms of payment, like ACH mobile payments, at a lower price.
As an ISO, you create an additional income stream when you partner with a payment gateway like iCG. When merchants accept payments using these technologies, you get a small percentage of the payment, which boosts your revenue. The more clients you sign up for your ISO, the higher your income.
Costs of Payment Processing
Billing companies need to factor in the cost of payment processing. For instance, healthcare payment processing solutions prioritize contactless payments, self-serve technologies, data security, and automated processes. These solutions are much faster and incur fewer processing fees than manual processes like sending paper checks.
Therefore, as an ISO, you must choose payment processing technologies to cut unnecessary costs.
You’ll gain more customers and earn higher revenue if your clients are satisfied with the services. To maintain this, you need to use payment processing technologies that are highly secure, fast, and come with multiple payment options. Your bottom line will improve as you sign up more clients.
How Payment Processing Partnerships Help Businesses Improve Their Financial Performance
A company’s net income is used to determine its profitability. In 2022, Saudi Aramco, Apple, Microsoft, Alphabet, and Equinor were ranked as the most profitable companies globally. Some of these companies attribute their increased profits to strategic partnerships.
You can achieve high profitability through a channel partnership with a payment processor. Here are some of the ways:
Partnering with a payment solutions provider streamlines operations in your ISO. These partner programs simplify the sales process so that you can focus on the primary objectives. By working with a single processing partner, your sales representatives only need to deal with the requirements of one company.
Collecting payments throught manual methods like paper checks is more expensive. You can help merchants adopt real-time payments and reduce processing fees through your partnerships. Digital payment collection methods, like recurring technology, reduce overall business expenses by cutting the costs of sending paper invoices and billing statements.
Increased Revenue Streams
These partnerships can increase user signup rates. Once your customer base goes up, your revenue streams will follow.
What Are Common Payment Processing Solutions?
- Hosted Payments
- IVR Payments
- ACH Processing
- Credit Card Processing
- Email Invoicing
- Virtual Terminal
- PCI Scope
Key Factors to Consider When Choosing a Payment Processor Partner
- Compatibility with existing systems
- Customer support
- Processing fees that you’ll incur
Real-Life Examples of Successful Payment Processing Partnerships
Partnerships with payment processors have impacted the financial performance of many companies by increasing revenue and improving the business’s overall health. Here are some real-life examples:
- Littlepay partnered with Rapyd to provide seamless payment processing for merchants in Ireland and the UK. Thanks to the partnership, Littlepay can offer fast and convenient contactless payments in public transportation systems, increasing their overall revenue.
- Square creates a relationship between its merchants and Chase Paymentech. Once a customer pays using a card, Square gets a cut after Chase Paymentech has been paid. These types of partnerships bring in revenue.
- Judopay partnered with Nuvei Corporation to develop mobile-first digital payments for several restaurants. Thanks to this partnership, customers like KFC España benefited from lower processing fees, improving their payment experiences.
How to Get Started with iCG
You can improve the profitability of your ISO by partnering with a reliable partner like iCG. To get started:
- Click on the “Become a Partner” button.
- Our iCG Partner Managers will reach out to discuss details about the partnership.
- Sign a contract and start accepting payments.
- Set up complementary technologies such as email invoicing, SMS payments, and IVR payments.
As a Nacha Preferred Partner, iCG simplifies the sales process. In addition, this one-stop payment solution is PCI-DSS Level 1 Compliant; so you don’t have to worry about the security of your customer’s information. We provide excellent partner and customer support, meaning you can contact us for any assistance.
MORE TAGS:Partnership, ISOs, Independent Sales Organizations, Partners