Over the past few years, payments have been evolving rapidly. Digital payments have surged in popularity with data by Statista showing that the total transaction value of these payments is projected to hit $4,620.00 billion by 2028. Like other businesses, Independent Software Vendors (ISVs) are increasingly adopting these trends and positioning their businesses to meet this market shift.
Most ISVs are integrating with payment processors to boost their software offerings. However, there are multiple payment gateways in the market today, each with different features. Choosing a payment processor is a critical decision, as it directly impacts customer satisfaction and revenue generation.
Therefore, ISVs have to consider some key factors, such as integration, security measures, payment processing fees, and global reach, before signing the deal.
This is where payment processors like iCG Pay, formerly iCheckGateway.com, come in. Our solutions are optimized to suit the needs of your ISV.
In this blog post, we’ll delve into the crucial elements that ISVs prioritize when choosing payment processors.
What Is an ISV?
An ISV is a company that develops, markets, and sells software products or services designed for end-users or other businesses. These software providers are key players in driving innovation because they address specific market needs.
For instance, if you are in the banking industry, you can access industry-specific applications that allow you to provide online banking services more efficiently. To deliver their services, they partner with other service providers like payment gateways to boost their software offerings.
How Do Payment Processors Benefit ISVs?
Payment processing partnerships offer ISVs growth opportunities. They boost the software solutions and streamline the payment process. Let’s take a closer look at the benefits of having an ISV partner:
Extra Revenue Generation
ISVs can earn additional revenue through partnerships or integrations with payment processors. Many payment processors offer referral programs or revenue-sharing models in which ISVs receive a percentage of transaction fees generated through their software. For instance, your ISV can earn money after new merchant onboarding, boosting revenue streams.
Additionally, with integrated payment solutions, you can attract more clients looking for an all-in-one solution that can handle multiple payment methods.
Enhanced Security
Security controls like PCI compliance are very essential for ISVs. This is because payments are at high risk due to the rise in fraud cases. Working with payment processors like iCG Pay prevents fraud thanks to advanced security measures such as encryption, tokenization, and fraud detection systems.
By leveraging these capabilities, ISVs can protect sensitive payment data from unauthorized access or breaches. Offering payment security provides peace of mind to the end users, which is good for customer retention.
Better Data Management and Analytics
Statistics show that 3 in 5 companies rely on data analytics to drive innovation. For your ISV to keep up with technological advancements, you need a partner that generates valuable analytics and business insights. This data includes sales trends, customer preferences, and revenue patterns to help you make informed decisions and optimize your software offerings.
As a result, you can also provide added value to your clients by providing robust analytics capabilities.
Improved Efficiency for Merchants
Merchants use point-of-sale hardware and software to process payments. Therefore, they need a system that makes payment acceptance more seamless. Integration with payment processors like iCG Pay provides platforms like hosted payment portals and virtual terminals, boosting efficiency.
These payment terminals integrate with existing point-of-sale systems, reducing manual errors and saving time, ensuring merchants get paid faster.
How to Choose the Right Payment Processor for Your ISV
Now that you know the benefits of partnering with a payment processor, how should you choose the right one for your ISV business? Here are key factors to consider when making this decision:
Software Compatibility
As you select a partner, you need to pick one that provides payment gateways for developers. They should offer plugins and developer tools designed to work with your software. Compatibility ensures smooth functionality and minimizes development time and resources required for integration.
Additionally, confirm that the platform operates on all platforms, including web and mobile. This way, you can offer customers a consistent payment experience across all channels.
Supported Payment Methods
Before signing a contract, evaluate the range of payment methods supported by the processor to accommodate diverse customer preferences. Working with a processor like iCG Pay offers access to payment methods such as credit cards, ACH, email and SMS invoicing, recurring payments, and IVR processing.
ISVs should offer online payment methods; therefore, It’s important to choose a processor that offers flexibility and supports these options in your target markets.
PCI Compliance
Opt for payment processors that prioritize data security through encryption techniques to protect sensitive payment information during transmission. Verify compliance with industry security standards such as PCI DSS to ensure secure handling of payment data.
In addition, you should work with processors that employ robust fraud detection and prevention measures, such as machine learning algorithms and real-time transaction monitoring, which adds an extra layer of protection.
Cost Structure
Assess the fee structure of payment processors to understand the cost implications for your business. Consider factors such as transaction fees, monthly subscription fees, setup fees, and chargeback fees. Look for transparent pricing models with no hidden costs to accurately estimate the expenses associated with payment processing.
Technical Support
Your internal team may require occasional support from your payment processor. To make this process seamless, prioritize payment processors that offer responsive customer support channels. Prompt assistance ensures timely resolution of issues and minimizes downtime that could impact your business operations.
Choose iCG Pay for Your ISV Needs
Your ISV business requires seamless payment solutions. The only way to gain a competitive edge is by partnering with reliable payment processors that offer a hassle-free experience. iCG Pay is your go-to partner that can accommodate your software integration needs. Our complementary technologies allow you to provide your merchants and customers with platforms that can accept multiple payment options.
We secure your payment information to protect your customers from any breaches. ISVs that partner with iCG Pay offer advanced payment technologies to their customers, building a loyal client base. Partner with us today!
