New Stax data reveals that 91% of ISVs expect growth from embedded payments, yet gaps in visibility, support, and flexibility are slowing returns.
Embedded payments have shifted from a nice-to-have to a critical growth driver for independent software vendors (ISVs). When strategically integrated and optimized, they unlock better user experiences, stronger merchant relationships, and meaningful, incremental revenue streams.
But capturing that value takes more than just adding payments to the product roadmap. The real opportunity — and the real challenge — lies in effective monetization.
To gauge how ISVs are navigating the opportunity, Stax surveyed 300 payment professionals at the director level and above. The findings reveal a clear gap between ambition and execution, and point to what’s needed to close it, from clearer ROI visibility to stronger payment partner support.
TL;DR
- The majority of ISVs (91%) expect embedded payments to play a larger role in their growth strategy over the next 12 months, including 51% who say that role will be much larger.
- Integration complexity and limited visibility into payment performance are among the top challenges holding ISVs back from monetizing embedded payments.
- When asked about the top improvements they want for their embedded payments program, ISVs most often cited greater flexibility to serve different customer verticals and better tools to measure, track, and attribute payments-driven revenue — underscoring the need for configurability and clearer monetization insights.
Insight 1: You can’t grow what you can’t measure
Embedded payments are increasingly central to ISV growth strategies. Ninety-one percent expect these offerings to play a bigger role in their growth over the next year, with 51% saying they will play a much bigger role.
But ambition alone won’t drive results, especially without a clear way to measure success. A significant gap remains, with 34% of ISVs admitting their approach to ROI measurement is only partially defined or inconsistently applied.
That same percentage also cited limited visibility into payment performance and merchant usage as a top monetization barrier, suggesting many ISVs still lack the foundational insight to execute effectively.
Without that visibility, it’s difficult to double down on what’s working or course-correct what isn’t. It also creates hurdles in proving value internally, improving onboarding experiences, and identifying high-potential merchants.
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Sidebar: ROI confidence isn’t universal When asked how confident they are in their organization’s ability to define and measure ROI from embedded payments:
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Unsurprisingly, better tools for measuring, tracking, and attributing payments-driven revenue emerged among the top three improvement priorities for 30% of respondents.
To build a sustainable revenue stream from embedded payments, ISVs need infrastructure that make ROI tangible: clear success metrics, granular attribution models, and real-time reporting that goes beyond vanity metrics. Without that foundation, growth is guesswork.
Insight 2: Flexibility is key
While 39% of ISVs already view embedded payments as foundational to their business strategy and revenue model, 51% consider them an emerging priority and are beginning to invest in growth opportunities.
Yet as software companies ramp up their investments, many are hitting a wall. The top challenge identified in our survey is integration complexity, cited by 37% of respondents. Complex integrations can delay time-to-value for ISVs, making it harder to iterate, test, and scale embedded offerings.
And for many, those technical constraints are mirrored in commercial ones: 25% of respondents said they’re held back by rigid pricing or revenue-sharing models that limit their ability to tailor offerings to customer needs.
When asked to select their top three “wishes” for improving their embedded payments offerings, ISVs consistently highlighted a need for greater flexibility in how payments are integrated, monetized, or delivered:
- 30% want more flexibility to serve different customer verticals
- 29% want tools to optimize and test monetization strategies
- 25% want simpler, faster integrations with their platform
- 25% want more control over the branding and UX of payments
Respondents also pointed to more flexible pricing models, access to modern payment methods like digital wallets and real-time payouts, and surcharging or cost-recovery options as key improvements.
These findings point to a broader demand for flexibility at every layer of the payments experience. ISVs are looking for control over how revenue flows, how users experience payments, and how they can adapt those experiences to meet diverse customer needs.
Without this flexibility, embedded payments risk becoming a burden rather than a growth driver. But with the right tools and support, ISVs can transform payments into a scalable and customizable revenue engine.
Insight 3: When support lags, monetization stalls
Technology is only part of the equation for embedded payments success. Robust provider support is just as critical.
In our survey, 28% of ISVs ranked limited provider support among their top three monetization challenges, and 24% pointed to insufficient resources for helping customers adopt and use payments features.
These findings highlight that payment success isn’t purely technical. Strategic support, from onboarding and education to performance optimization, often determines whether a payments feature delivers real value or goes underutilized.
ISVs recognize this gap. Among their top three most-wanted improvements, 27% named more proactive provider support to help drive payments revenue. For ISVs focused on growth, embedded payments work best when backed by a provider committed to long-term enablement.
The Stax advantage: Turn payments into a growth engine
The data is clear: ISVs are eager to grow with embedded payments, but many lack the infrastructure, flexibility, and support to do it effectively. Stax Connect delivers on all three.
Stax Connect is a fully managed payments ecosystem designed to help ISVs scale smarter. With a single API, platforms gain real-time performance insights, flexible monetization options, and dedicated support. Whether you’re aiming to optimize your revenue strategy or speed up your go-to-market, Stax equips you with the tools and expertise to turn embedded payments into a sustainable growth engine.
Get in touch to start building a more flexible, scalable payments experience.
Methodology
In August 2025, Stax surveyed 300 U.S.-based payment experts working at independent software vendors (ISVs) generating between $25–250 million in annual revenue. All respondents were full-time employees at the director level or above, including directors (44%), vice presidents (38%), and C-suite/executive leaders (18%).
Each respondent worked at an ISV primarily serving one of the following verticals: field services (8%), healthcare/health tech (37%), education/ ed tech (17%), non-profit/fundraising (10%), and professional services (28%). All companies represented in the survey had already commercialized their software and were generating revenue at the time of participation.
FAQs about embedded payment monetization
Q: What are embedded payments?
Embedded payments, also referred to as integrated payments, are payment capabilities that are built directly into a software platform. Instead of redirecting users to an external processor, the payment experience happens within the software itself. This integration allows independent software vendors (ISVs) to offer a more seamless, branded experience that improves customer satisfaction while opening up new opportunities to drive revenue.
Q: How can ISVs generate revenue from embedded payments?
ISVs can generate revenue from embedded payments by sharing in the processing fees on transactions completed through their software. As adoption of embedded payments grows among end users, revenue opportunities increase. By optimizing pricing models, expanding adoption across industry verticals, and refining how payments are integrated and positioned, ISVs can transform payments from a basic feature into a scalable, high-margin income stream.
