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Integrated Payment Partnerships – The Key Benefits for ISVs

ISV Payment solutions (2)

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. 

Enhanced Security

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.

The Benefits of Integrated Payment solutions for ISV, Merchant and End Users

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

Generate Revenue

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:

  1. Referral Program
    For this model, the software vendor simply refers new leads to their payment partner, who is responsible for all sales and support functions. As a result, this model usually provides the smallest revenue share amongst the three models.
  2. Agent Program
    In this model, the software vendor is usually responsible for the sales and onboarding process, while the payment processor’s role is limited to training, activation, and customer support.
  3. Independent Sales Organization (ISO) Program
    With this model, the software vendor has the most control over the user experience and can maximize revenue generation as all sales and support functions are kept in-house.

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.

Conclusion

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.

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Online Payments

How Integrated Payments Help ISVs Grow Revenue

integrated payments

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’s Solution

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:

  • EFT / ACH: Seamlessly facilitate bank payment processing by connecting to North America’s banking system.

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.

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FintechPayment Platform

Top 8 Payment Methods By The Numbers

Top 8 Payment Methods

We looked at the 8 most common payment methods used in Canada. Cheque and EFT payments values clearly eclipse all other payment methods by a significant margin. These numbers are mainly driven by account to account payments by businesses and present a significant opportunity for modernization. It’s important to keep in mind that these Payment Canada numbers are from 2018 so we can expect cheque payment value to continue to decrease and shift to other payment methods.

VoPay’s next-generation EFT payments technology service will help support businesses in finding new efficiencies including improved cash flow through faster funding times, bank account verification for added security and account balance visibility to decrease return transactions. Learn more here about our enhanced EFT payment services and everything else we have to offer to make your business run better.

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Online PaymentsPayment Platform

What Are ACH Payments and How Do They Work?

ACH Payments

An ACH payment is a bank term that stands for the Automated Clearing House. ACH payments are electronic transfer systems that move money between bank accounts in the U.S. A few examples of ACH payments include direct deposits, payroll, online bill payments, tax refunds, and vendor payments for merchants and small businesses. 

Automated Clearing House Network

Since 1974, the Automated Clearing House (ACH) Network has been run by the National Automated Clearing House Association (also known as NACHA). In other words, they are responsible for the majority of all payments in America. 

The ACH Network that is responsible for the payments is one of the biggest payment networks in the U.S. In 2018, nearly 23 billion transactions were processed valued at more than $51 trillion. According to one source, the number of transactions in 2017 was equal to approximately 66 transactions and more than $140,000 for every living American. The ACH payment network also represents more than 10,000 financial institutions, not to mention consumers and businesses. 

How does ACH payment processing work

ACH payments are transfers of money between two bank accounts and can be broken up into ACH debit and ACH credit. Payments are either transferred (or pushed) from your account or received (or pulled) by another. 

ACH Debit: Pulling money

Pretend for a moment that you’re a business owner with a utility bill to pay. You had previously provided your account and bank routing number to the utility company and approved direct bill payments. The company sets up an ACH debit to pull money from your account. 

ACH Credit: Pushing money

Assuming that you are still that same owner with a utility bill, you can also initiate the payment. You can create an ACH credit to withdraw or push funds from your account to the utility company.  

How ACH payment processing works

In order to receive or send ACH payments, one has to connect their bank account and routing number to enable automatic payments online. Once that’s happened, here’s how the processing works: 

  1. Initiate transfer: Sending money triggers an initial transfer request to the central clearinghouse.
  2. Sorting: The ACH Network sorts the payment requests and sends it to a receiving bank.
  3. Processing: This bank processes the transfer to either an ACH credit or debit. If the payment is approved and was an ACH credit that “pushed” funds, the transfer is complete. 
  4. Pulling funds: If “pulling” funds, or an ACH debit, then the funds must move back through the clearinghouse before arriving in the other account. 

How long does an ACH transfer take

The ACH Network processing time is getting faster and easier with every innovation but can still take up to 3-5 business days. This is because of the multi-step process and various bank touchpoints that each transaction must go through to be completed. However, recent changes to NACHA’s operating rules will make transfers faster than ever. As of September 2020, most, if not all, ACH transfers will be completed by the same day. 

How to make ACH payments

VoPay connects directly to both ACH payments in the U.S. and EFT payments in Canada, allowing users to accept, send, and bulk transfer payments online. Our secure technology allows users to accept and manage ACH payments directly from any bank account. 

ACH payments in Canada

Digital payments in the U.S. are called ACH payments. In Canada, however, they are called EFT payments, or electronic transfer funds. The difference is that ACH payments go through the Automated Clearing House Network. For more information, read our in-depth blog post called Everything You Need to Know about EFT Banking

Learn more about VoPay and ACH payments.

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Payment Platform

‘Tis the season to pay: Avoiding holiday debt

Holiday Debt

As Scrooge might say, ‘tis the season to pay—and for exorbitant holiday debt. As it is, consumer debt is at an all-time high exceeding $4 trillion and it’s no wonder it’s worse this holiday. Let’s take a look at the stats:

Though not surprising or anything new, 70% of adults are stressed about this year’s holidays, mostly because of money, payments, and debt. Yet, despite so much consumer debt, people are still willing to continue to charge their credit cards for holiday gifts. This is one of the most expensive ways to borrow money, however, and can lead to more debt very quickly.

Holiday debt and credit card spending

For example, according to an Experion survey on holiday spending for 2019, consumers will spend 75% more on gifts this year than last. In 2018, they planned on spending $949 for holiday gifts and this year, it’s more like $1,649. But according to Ted Rossman, from CreditCards.com, if shoppers spend $1,500 and only made their minimum payments, it would take over eight years to pay off—and the accumulated interest would be $1,217 at our current interest rates.

That is a huge price to pay in interest alone. At that point, we have to ask: is it worth it? Is there a better, more responsible way to pay for holiday gifts for our loved ones? 

Spending your hard-earned savings or succumbing to debt 

According to a recent NYTimes’ article, Merkel Landis from the Carlisle Bank of Pennsylvania came up with the idea of the Christmas Club savings account back in the 1920s. This became popular before middle-class consumers had easy access to credit cards (and the debt that often comes with them). The whole point was to save money (and perhaps even accumulate interest) leading up to Christmas shopping. What a concept: spend what you have. 

However (and to be fair), even the most debt-free savvy spenders among us have since replaced their holiday savings accounts with various types of credit cards. This could be partly due to online shopping. For example, 53% of all holiday shopping this year is expected to be done digitally. This kind of shopping really only leaves consumers with credit cards as a way to pay. 

As well, some of these credit cards earn people rewards, which could be another reason for the shift away from savings toward credit. The more they buy, the more they earn. But, as NYTimes so aptly puts it: “buying more stuff than you typically do increases your risk of credit card debt.” Consumers are thus forced to succumb to record-high-interest rates, everlasting credit card debt, and spending beyond their means. 

Save up and spend online this holiday—without the debt

Thankfully, the digitization of payments is changing all of that

Consumers (and merchants, for that matter) finally have another online payment option. VoPay, as an example, is a financial technology (fintech) company that digitizes direct payments. Consumers can once again tap into their hard-earned “Christmas Club” savings accounts to pay for their holiday shopping online. They can rid themselves of crippling credit card debt and the stress that comes with the holidays but isn’t necessary anymore. They can once again spend the money that they have—and enter 2020 debt-free with a little bit of planning and savings.

Learn more about VoPay and how digital payments work.

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