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.
An omnichannel commerce payments solution allows your merchants to accept payments however their customers prefer.
The data from all payment channels is centralized, providing actionable insights for you and your merchants.
Unified management means you’ll spend less time on manual tasks and more time building your business.
Value-added services such as automatic account updater, customer vault and Kount fraud protection to create a stickier relationship between you and your merchants.
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.
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.