As part of our blog series on ISV partnerships, today we’re taking a closer look at the key benefits of integrated payment partnerships.
The Future of Payments Is Integrated. The payments landscape does not stand still, and as such merchants will always require turnkey solutions that allow them to keep up with the shifting needs of their customers. For developers who have the foresight to identify these behavioural shifts and the technological expertise to capitalize on them, integrated payments present an attractive proposition.
What Are Integrated Payments?
While digital payments have been around for decades, the industry as a whole has undergone a massive transformation over the past 12 months as the shift to online payments has become the preferred method of choice when making transactions.
In order to keep up with this significant shift from cash towards digital transactions, as a SaaS (Software as a Service) or ISV (Independent Software Vendor), it is smart to partner with an experienced provider that can make this transition within the payment processing world easier, help you future proof your business as well as stay ahead of your competition.
This is where integrated payments come in, which are changing the landscape of digital payments and are proving to be beneficial for both ISVs and their customers. Integrated payments refer to payment processing systems embedded within a specific software application. This feature allows end-users to make purchases within the software solution itself, rather than exiting the platform to complete their sale through a third-party processing company.
What Are the Benefits of Integrated Payments?
As an ISV vendor, creating a software solution that can also process payments is a gamechanger for you, your merchants, and their customers. Enable your merchants to process real-time payments, reconcile, and automate recurring payments directly within your software solution by adding a single API payment integration — without the need to overhaul an entire IT department.
Let’s take a look at several key benefits that make integrated technology well worth your consideration:
How Integrated Payments Benefit End Users
Superior User Experience
With an integrated payment processing functionality, the end-user would be able to checkout, make payments, and complete the process all on one page. On the other hand, if the payment system was not embedded, the customer would be redirected to another 3rd party landing page (such as PayPal) before being redirected once again back to the merchant’s page. This is a broken, irritating and time-consuming user experience that results in fewer conversions and potential loss of business.
Furthermore, every time an ISV merchant directs a user away from their secure site and toward a third-party processor, they jeopardize their customer’s sensitive information.
Encryption, tokenization and other security approaches have helped ease customer and merchant fears around using and accepting digital payments. VoPay’s security features ensure the protection of personal data through the use of encrypted tokenization.
How Integrated Payments Benefit Merchants
Time, Speed and Efficiency
Integrated payments solutions relieve the burden of manual accounting for merchants and reduce human error, as payment records are entered automatically into the software.
Usually, merchants are so focused on receiving payments they hardly think about the time spent on reconciling invoices, recording transactions into accounting software, and balancing financial ledgers.
Integrated payments solutions can also help merchants get paid faster and avoid leaving payments unprocessed months after the transaction was made. Considering that 9 out of 10 businesses fail due to poor cash flow, integrated payments solutions can help merchants ensure they’ll be around next year.
How Integrated Payments Benefit ISVs
By adding a payment processing API integration like VoPays to their software, ISVs can increase partnership opportunities and boost business revenue through revenue-sharing programmes. ISVs have the potential to earn a percentage of the revenue generated through each transaction fee that would have otherwise been paid to third-party processors to complete a sale.
Recurring revenue streams can be created through one of three common partner models:
VoPay’s Solution for Your Business
As discussed, if you are a SaaS or Integrated Software Vendor, you need tailored solutions that benefit both your business and your customers. We know that one size does not fit all when it comes to payment solutions.
One of the most important decisions a software provider will make is how much control they want to have over the user experience. With VoPay you can choose between a web-based payment portal or a fully integrated API solution that provides complete control over the user payment experience.
With one seamless API integration, you can connect your ERP (enterprise resource planning), CRM (customer relationship management), web services, applications, or other legacy order entry systems to our sophisticated and user-friendly payment gateway. VoPay's complete set of APIs allows you to securely integrate a wide range of direct bank payment processing as well as bank account verification capabilities, payment data tokenization, account balance visibility and real-time funding.
In conclusion, integrated payments can improve revenue through profit-sharing and upfront incentives and maximize conversion rates. Clients can benefit from low-cost rates on payment processing, tokenized security, full-transaction lifecycle reporting and seamless onboarding. WIN-WIN!
Regardless of the revenue model, it’s helpful to work with a payment partner that provides a dedicated team of sales specialists who are: experts in your industry, willing to learn your software, and have an understanding of your clients’ needs.
See our current partners and get in touch if you would like to discuss becoming an official VoPay partner.