As an ISV striving to grow, every bit of revenue and added profitability can significantly impact your future. Payments integration is one well-known source of recurring revenue that can play a prominent role in your success. But unfortunately, most ISVs start their payments journey on a path that doesn’t lead to the riches they imagine. In fact, in some ways, the wrong payment integration decision upfront can lead to payments effectively becoming a cost center, as opposed to the profit center of which many dream. Fortunately, it’s not difficult to turn payments into the source of profitability it should be.

Roadblocks to a highly profitable payments integration

 

Integrating payments into your software can be intimidating. Most ISVs are subject matter experts within their own markets but understandably aren’t familiar with payments. Topics such as compliance and underwriting sound daunting enough to drive ISVs to what they perceive as the easiest path of integration.

 

These entry-level payments solutions provide a one-size-fits-all technology aimed more at software startups than mature companies. Their offerings might be simple to implement but can’t be customized for your specific needs or those of your merchants, and the revenue share is seldom equitable. By the time you and your customer base have grown or you’re ready to make a change, the task of switching payment providers can feel overwhelming.

 

The bottom line is that many popular integrated payments solutions aren’t flexible enough to scale with you as you grow. But, more importantly, they also aren’t designed for you to turn as large a profit thanks to excessive transaction fees and provider cuts that damage your bottom line.

 

Turn payments from a cost center to a profit center

 

If the average payment integration isn’t enough, what is? The payments marketplace moves quickly, and ISVs that don’t offer full commerce payments capabilities risk falling behind. Here are three essential tips to keep in mind:

 

  • Look for omnichannel commerce solutions. When incorporating payments capabilities, prioritize software solutions that allow you to accept payments across all points of commerce: online, in-app, in-store, mobile and unattended (e.g., vending machine and parking lot kiosk). Additionally, look for platforms that can accommodate tap-to-mobile and QR code capabilities.

  • Find a vendor-agnostic payments solution. Choose a payments solution with white-labeling capabilities to provide your clients with a frictionless user experience. Instead of juggling multiple platforms for payments and business operations, vendor-agnostic payments software enables merchants to manage all operations on one platform — and all under their name.

  • Prepare for future payments evolutions. Consumer trends are ever-changing, and your merchants need the latest technological capabilities to keep up. Opt for software solutions that are agile enough to handle new payment methods, and ensure your third-party provider can be a strategic partner in monitoring payments evolutions.

 

Benefits of partnering with a payments enablement provider

Integrating with a payments enablement provider like NMI provides many benefits beyond accepting electronic payments.

  1. An omnichannel commerce payments solution allows your merchants to accept payments however their customers prefer.

  2. The data from all payment channels is centralized, providing actionable insights for you and your merchants.

  3. Unified management means you’ll spend less time on manual tasks and more time building your business.

  4. Value-added services such as automatic account updater, customer vault and Kount fraud protection to create a stickier relationship between you and your merchants.

  5. A next-gen partner will help you stay ahead of the innovation curve.

Additionally, you can get more involved by underwriting your underlying merchants. In doing so, you can achieve significantly higher payment residuals by taking on more of a participatory role in payments as an ISO or Payfac.

Combining all these benefits can have a considerable impact on your business. For example, many ISVs who have partnered with NMI experience sustained growth levels of 30%+ from payments.

Next steps

Getting more involved in payments while earning more revenue and higher profitability doesn’t have to be overwhelming. With the help of a company like NMI, you can quickly arm your business with the scalability, expertise and agility to meet new payments trends head-on. To learn more, contact NMI today.

Talk to Our Team

Fill out the form and a member of our team will get in touch with you to go over any questions you have.

Subscription Payments 101: The Top 4 Subscription Models
NMI Insights

Subscription Payments 101: The Top 4 Subscription Models

The subscription commerce model can be an excellent source of revenue for merchants (and their payment providers). It allows consumers to opt-... Learn More
Subscription Payments 101: What Are Subscription Payments?
NMI Insights

Subscription Payments 101: What Are Subscription Payments?

Before the widescale digitization of our lives, most things—media rentals, groceries, video games and software—were regular one-time purchases... Learn More
What Drives Consumer Payment Preferences?
NMI Insights

What Drives Consumer Payment Preferences?

For a long time, payments weren’t something merchants had to put much thought into. Today that isn’t the case.  The payments industry, along ... Learn More
How Data Drives Optimized Merchant Pricing
NMI Insights

How Data Drives Optimized Merchant Pricing

Optimized merchant pricing is vital in maintaining the balance between merchant satisfaction and revenue generation. It ensures that acquirers... Learn More
Preparing for Black Friday: Why Merchants Need Reliable Payments
NMI Insights

Preparing for Black Friday: Why Merchants Need Reliable Payments

Black Friday, Cyber Monday and the surrounding sales days are some of the busiest days for merchants in the U.S. (and, increasingly, around th... Learn More
Cybersecurity Awareness Month: The Advantages of Advanced Payment Systems
NMI Insights

Cybersecurity Awareness Month: The Advantages of Advanced Payment Systems

In the final part of our Cybersecurity Awareness Month series, we’re going to look at what a complete merchant security offering looks like an... Learn More
Merchant PCI Compliance Demystified: Simplifying Security
NMI Insights

Merchant PCI Compliance Demystified: Simplifying Security

In part two of our Cybersecurity Month blog series, we looked at the evolution of cybersecurity threats and why they’re becoming a bigger conc... Learn More
Small Merchants Can Enhance Payment Experiences with ISVs
NMI Insights

Small Merchants Can Enhance Payment Experiences with ISVs

In a recent guest post for The Green Sheet, NMI Chief Growth and Marketing Officer Peter Galvin examined the critical role seamless payment ex... Learn More
Why Small Merchants Rely on Payment Providers for Cybersecurity
NMI Insights

Why Small Merchants Rely on Payment Providers for Cybersecurity

Part two of our Cybersecurity Month 2023 series examines an increasingly concerning trend in cybercrime – targeting small businesses.  60% of... Learn More
Prime Day Sets a Strong Example for Small Merchant Ecommerce
NMI Insights

Prime Day Sets a Strong Example for Small Merchant Ecommerce

Twice a year, Amazon holds Prime Day—a massive two-day sale event available exclusively to Amazon Prime members. Prime Day benefits Amazon in ... Learn More