ISV payment processing fueled by payments-led growth

Most businesses wouldn’t be able to operate without their independent software vendors (ISVs)—in fact, the global ISV market is expected to reach 162 million by 2027. Thoughtfully designing the user experience greatly impacts your customers, and one way to enhance the customer experience is to provide integrated payments solutions into your software. To help your SaaS solution get started with payment integration, this article covers the ins and outs of ISV payment processing so you can get started quickly and confidently.

The connection between ISVs and payments

With so many terminologies for payment processing and software solutions, it can be difficult to memorize all of the acronyms. So, for the purpose of this article, let’s clarify a couple of commonly confused terms to level set.

Regarding the payments ecosystem, one common term is Independent Sales Organizations (ISO). ISOs sell payment services to merchants on behalf of payment processors and serve as an intermediary between the payment processor and the merchant. The main purpose of an ISO is to provide payment processing to merchants.

An ISV is a broad term describing companies that build and sell software solutions. ISVs do not necessarily have payment processing integrated, but integrating payments is an excellent way to improve ISV revenue streams and enhance business operations.

What is ISV payment processing?

Simply put, ISV payment processing embeds payment capabilities into the software. SaaS providers partner with a payment processor, so the software can process electronic payment methods such as debit cards, credit cards, mobile wallets, and more.

ISVs that integrate seamless payment processing improve the payment experience for the end user and, as a result, allow them to increase revenue streams. Further, an ISV that processes payments is a useful differentiator in a crowded software market, making the solution more desirable to customers and presenting more revenue opportunities.

What are ISV partners?

ISV payment processing partners are payment processors that provide an ecosystem to help your SaaS platform manage and monetize payments. Stax Connect is an ISV partner that helps you implement a payment system into your software solution.

Why work with ISVs?

The software world today is extremely connected—take, for example, the connectivity of Google and Apple devices and applications. These widely-used services are essentially ubiquitous, partly because of the connected user experience that allows for single sign-on access, payment integration, and many useful applications.

Independent Software Vendors may not have the same reach as the Googles and Apples of the world, but they do provide tremendous value to businesses in filling sometimes niche needs or seamlessly plugging into business operations to enhance the user experience. From SMBs to large enterprises, ISVs are critical to business operations. If payment services are integrated into these solutions, SaaS solutions can realize their full potential and differentiate their product.

• Technology capabilities and payment methods: does the ISV partner have current technology and accept the payment methods you need? There are more payment options than ever before, so selecting an ISV partner that keeps up with trends and alternative payment methods is essential.
• Analytics: financial data is one of your most powerful decision-making tools. When selecting an ISV payment processing partner, consider the necessary payment information you want to see in a dashboard and choose a partner that can deliver.
• Customer support: when you have a question or something goes wrong, it’s important to have support when you need it. Stax Connect not only has white-glove, dedicated customer support, but we also have a robust knowledge base available for self-serve support.
• PCI compliance and payment security: your payment processing partner must adhere to the PCI compliance standards to protect your company and your customer’s information. When selecting a partner, make sure they affirm their software and hardware are all PCI compliant.
• Fee structure: Depending on the scale of your business, average transaction size, payments accepted, and many other factors, the fee structure of your payment processor can significantly affect your costs.

ISV Payment Processing Partner

If you’re a SaaS company helping users run their businesses, offering integrated payment solutions can take your business to the next level. Stax Connect can help your SaaS increase revenue streams, provide an exceptional user experience, and more.

Quick FAQs

Q: What is ISV payment processing?

ISV payment processing involves embedding payment capabilities directly into software solutions provided by Independent Software Vendors (ISVs). This allows users to process electronic payments such as debit cards, credit cards, and mobile wallets seamlessly within the software.

Q: Why should ISVs integrate payment processing into their software?

Integrating payment processing into ISV software enhances the user experience by providing seamless payment options. It can also increase revenue streams, differentiate the software in a crowded market, and make the solution more desirable to customers.

Q: Who are ISV payment processing partners?

ISV payment processing partners are payment processors that provide the necessary infrastructure and support to integrate payment systems into ISV software. For example, Stax Connect is a partner that helps SaaS platforms manage and monetize payments.

Q: What are the benefits of ISV payment processing for businesses?

By integrating payment processing, businesses can streamline their operations, improve customer satisfaction, and open up new revenue opportunities. It also helps in creating a more connected and efficient user experience.

Q: How does ISV payment processing improve the end-user experience?

ISV payment processing allows end-users to make payments directly through the software without needing third-party systems. This reduces friction in the payment process and enhances overall user satisfaction.

Q: What should ISVs look for in a payment processing partner?

ISVs should look for partners that offer robust technical support, seamless integration capabilities, competitive pricing, and a proven track record in the industry. The partner should also provide tools to help manage and monetize payments effectively.

Q: What are the challenges of integrating payment processing for ISVs?

Some challenges include ensuring compliance with payment regulations, managing the technical integration, and maintaining security standards. However, partnering with an experienced payment processor can help mitigate these challenges.

Q: How can ISVs increase their revenue streams through payment processing?

By integrating payment processing, ISVs can offer value-added services to their customers, such as subscription management, automated billing, and advanced payment options. This not only enhances the software’s functionality but also opens up new revenue channels.

Q: What is the difference between ISOs and ISVs in the payment processing ecosystem?

Independent Sales Organizations (ISOs) sell payment services to merchants and act as intermediaries between payment processors and merchants. In contrast, Independent Software Vendors (ISVs) develop and sell software solutions, which may include integrated payment processing capabilities.

Q: Why is payment integration a key differentiator for ISVs in the software market?

Payment integration sets ISVs apart by providing a comprehensive solution that meets the diverse needs of businesses. It enhances the software’s value proposition, making it more attractive to potential customers and helping ISVs to stand out in a competitive market.