In today’s growing technology landscape, particularly when it comes to digital and integrated payments, it’s no secret that consumers want innovation and seamless payment solutions when it comes to making transactions.
For independent software vendors (ISVs), it can be daunting, and potentially challenging, to integrate new software to meet the needs of their clientele without losing business or causing mishaps in daily transactions.
With payment trends evolving at a rapid pace, consumers are being conditioned for instant gratification when buying goods and services. The ability to offer best-in-class integrated payments as a feature of a software solution is key to future-proofing and scaling an ISV’s business. Seamless integration of payment automation and reconciliation and real-time data analytics adds value to any ISV business proposition.
The growth of Digital Payments
A report from GrandView Research shows that global digital payments are expected to reach roughly US$236 billion by 2028, growing at a compound annual growth rate of 19.4 percent between 2021 and 2028. According to the report, this growth can be tied to an increase in non-cash transactions and advancements made in the fintech sector. Similarly, a report from Mordor Intelligence states other factors contributing to this growth include integrated, and seamless, user experiences.
Case in point, integrated payments are broadening the scope of digital payments as consumers and businesses are increasingly demanding for more sophisticated processing solutions.
In tandem with the growth of digital payments is the rise in ISV companies. In 2008, there were only roughly 10,000 SaaS companies, which grew to 100,000 in 2018. By 2028, experts are predicting that number will reach 1 million. As such, it’s important for ISVs to stand out as this growth continues, and implement payment processing solutions that are distinct from the rest.
Why ISVs are shifting to Digital Payments
Staying ahead of the curve — particularly when it comes to operating as an ISV — is important in today’s world of payment solutions.
According to a research report, 87 percent of ISVs surveyed indicated they believe the number of payment options they provide directly impact the amount of business they do, while 88 percent said upgrading their payment options is a priority. Meanwhile, 86 percent of the respondents claim their customers are turning to them to lead in providing new payment methods.
Although digital solutions have been in place for decades, the COVID-19 pandemic has had a drastic impact on the payments industry. For example, an EY report states that the virus has led to an acceleration of as much as 10 years’ worth of growth in four months with no signs of slowing down. This means that the ability to receive and make payments online is more important than ever, with fast and cost-effective open banking account payments surging in popularity all around the world.
This is where integrated payment solutions come into play.
What are Integrated Payments?
An integrated payment processing solution is essentially a system that is installed in a specific software application where customers can make payments directly through the software instead of having to move through a third-party system to finish the transaction.
Through an integrated payment processing system, ISV customers can generate invoices and accept online bank payments and pay bills directly through the application.
Payment processing solutions are constantly evolving to keep up with the transforming landscape of business and consumer needs. Not only are integrated payment solutions creating a more seamless user experience, they also help generate business revenue.
Benefits of Integrated Payments
Integrated payment solutions have a wide range of benefits for ISVs and for their customers. Here are a few benefits associated with integrated payment solutions:
Saves time and money
Ironically, managing finances can be costly and time consuming, but integrated payments make so banking information doesn’t have to be entered every time a payment is processed. This information is automatically entered into the software, which saves time in the future so ISVs can focus on their customers.
Adds competitive advantage
Adding an option such as an integrated payment solution gives ISVs a leg up in the payments sector — especially when payment processing solutions are integral to business operations.
Bank payment processing for ISVs is beneficial for a range of reasons, including: adding value to an ISVs products; reducing how much work clients have to do to manage their businesses, and; building ISVs expertise in integrated payment solutions to be able to provide the best customer support possible.
Offers seamless and secure payment options
While digital payment options have their advantages, there’s always the lingering fear of data security breaches.
With integrated payment solutions, ISVs have the opportunity to provide technology that is regulatory compliant and tokenized without handling sensitive payment information. At VoPay, tokenization is a solution that we use to ensure consumers remain protected while enjoying this increased convenience.
Choosing the right payment partner to grow revenue
ISVs don’t have to do the work to become payment processors themselves to support these fundamental solutions for clients. Instead, it’s better — and more efficient — to partner with an integrated payment solutions provider like VoPay.
This partnership gives ISVs access to a brand-new revenue stream, called revenue sharing. Revenue share agreements means any customers an ISV refers to their partner for merchant processing gives them a percentage of any and all revenue generated.
ISVs looking for a payment partner to take on the heavy lifting of processing transactions, regulatory compliance and account onboarding will benefit from API-first integration. A fully integrated system in application programming interface (API) advantageously allows the entire system to reside within a merchant’s infrastructure. A partner, such as VoPay — who is dedicated to clean documentation and comprehensive developer tools — will ensure smoother integration and lighter workloads for ISVs.
VoPay partners with hundreds of ISV and SaaS providers across Canada enabling direct bank payments through a single API integration. Streamline sending, requesting and reconciling payments with data-rich, safe and efficient tokenization technology. With a payment processing partner like VoPay, ISVs can anticipate the future needs of their clients with frictionless integration built directly into their software platform.
Through the VoPay API layer, you can access a different range of payment services, including:
- Intelligent EFT / ACH (iQ11): Accept instant bank account verification payments, improve payment speed and reduce NSFs.
- EFT / ACH: Seamlessly facilitate bank payment processing by connecting to North America’s banking system.
- Interac e-Transfer for Business: Send and Request near real-time payments at scale with higher funding limits with just an email.
- VoPay Instant (Visa Direct): Send money directly to almost any Visa cardholder in real-time.
If you’re an ISV looking to take your payment solutions to the next level, we encourage you to get in touch with one of VoPay’s product specialists who will work with you to enable the best payment solution, increase your revenue and beat your competition.