It is natural to ignore aspects of your business that don’t demand urgent attention. However, as an independent software vendor (ISV), one area you cannot afford to overlook is providing integrated payments to your consumers. Explore why it is crucial to have integrated payments for independent software vendors.
A major advantage of integrated payments for independent software vendors is the ability to generate recurring income. This blog will define all of these concepts while highlighting the reasons why ISVs require an independent payment solution.
ISV is a term that refers to software developers that create, promote, and offer software services to either niche or mass markets.
In general, the software produced by ISVs serves a wide range of functions in different vertical industries like gambling, e-commerce, energy innovation, data capture, and healthcare.
ISVs also develop software that is native to different devices and operating system platforms. Special initiatives are offered by companies that provide these platforms to encourage and assist ISVs.
These initiatives enable the platform provider and the ISV to capitalize on their complementary capabilities and turn them into new commercial possibilities.
ISVs have emerged as key players in the IT sector, frequently acting as funnels for the dissemination of innovative technology.
Integrated payments are payment processing systems that are incorporated into software programs. With an integrated payment solution, customers can pay directly through a software program.
An integrated payment, for example, would enable your clients to take payments straight from their customer relationship management (CRM) or billing software.
This new feature enables your clients to optimize their operations and provide their consumers with a safe, simplified payment experience.
Integrated payment systems also increase the value of your product and provide additional income opportunities.
However, software suppliers do not have to go through the process of becoming a payment processor to enable these essential solutions for clients. Instead, you may collaborate with a third-party supplier of integrated payment solutions. These third-party suppliers will help create a seamless payment space for the customers of your client.
Now that you have an idea of what ISVs are and how they can utilize integrated payment solutions, let’s look at the benefits of integrated payment for your software programs.
The most important thing to remember is that integrated payment solutions help both your company and your customers. Here are five reasons why ISV payment solutions may benefit your software business.
When it comes to deploying a software solution, your clients are already overwhelmed with alternative options.
And it's not difficult to discover other firms that provide identical services. That is why it is critical to increase your software's functionality and deliver a superior product to your clients.
And that is what you are accomplishing by adopting integrated payment solutions. You are adding value to your clients by installing a payment gateway for ISVs.
And by making investments in the customer experience, you will increase client retention and loyalty.
You may enhance your clients' marketing potential by introducing payment solutions to your product range.
They can accept a wider range of online payments, allowing businesses to sell to a larger audience and get items to market faster.
And because payment data are automatically loaded into the program, integrated payment systems eliminate the need for manual bookkeeping.
Offering digital transactions has numerous advantages, but it does represent a significant data security risk.
Your clients are putting their customers' payment information in danger every time they refer them to a third-party processor. Integrated payment solutions leverage tokenization to provide payment card industry (PCI) compliant technology without having to handle confidential billing information directly.
Tokenization is the process of replacing sensitive customer data with non-sensitive special characters known as tokens. A token is a one-of-a-kind series of characters that mimics the original data but has no real value.
As a result, critical client information is safeguarded, if a data breach occurs. This guarantees that all client funds are kept safe.
Your firm will be more competitive in the market if you add a new service or payment choice to your service.
This is important when the service is as critical to a company's success as the capacity to accept payments. For example, credit card processing for ISVs provides the following benefits:
Including extra services to your products helps your company stand out from the competition and creates a marketing strategy that potential customers can connect with.
One of the most significant advantages of an integrated payment system is the ability to generate recurring income streams through one of three basic partner models: the agent model, the referral program, or the independent sales organization (ISO) model.
If you decide that a partnership strategy is better for you, it's a good idea to engage with a payment provider that has a specialized staff of sales professionals.
You may want to locate a sales staff that is an expert in your industry, ready to learn your product, and understands the demands of your clients.
Your partner should collaborate with you to develop personalized marketing initiatives that align with your customer service strategy.
There are several advantages to making ISV payments solutions. As a result, while building software for clients, particularly e-commerce customers, ISVs should consider incorporating payments solutions.
Adopting integrated payment solutions allows you to:
What’s more, you don't have to become a payment processor to offer these services to your customers. You may benefit from tailored payment solutions by partnering with third-party integrated payment providers rather than doing the hard work yourself.