Ten years ago, it was novel to have a SaaS, CRM or EHR platform that offered core business and operational functions while also allowing customers to pay for services within the platform itself.
Shoot to 2023 when payments integrated or embedded within software systems are not only the new normal but are expected by consumers – regardless of industry. You prepay for an appointment with your doctor through their EHR system, you order an Uber or Lyft and pay within their mobile application, you visit your salon and tap to pay through their CRM.
According to Bain & Company, Independent Software Vendors (ISVs) have the potential to address $35 trillion in payments, or 15% of the worldwide total, by integrating payments into their platforms. Not only do integrated payments meet consumer demand but they also offer ISVs and SaaS platforms a lucrative revenue stream while creating stickiness with clients.
But navigating the world of payments can be a challenge for software companies. Let’s look at exactly what integrated payments are, the benefits of integrated payment systems and considerations when choosing an integrated payments partner.
Integrated payments - also called embedded payments - is payment acceptance built directly into the software systems that businesses use to conduct commerce. Virtually every company now uses one or more software platforms as part of their day-to-day operations. Many are consumer-facing, where individuals are directly interacting with the SaaS platform, whether in healthcare, higher education, retail or government. For consumers, paying within the platform is convenient, efficient and can enhance brand loyalty.
The terms “integrated payments” or “embedded payments” also encompass any kind of payment method – and there are many to choose from, including:
Credit & debit cards
Automated Clearing House (ACH) transfers
Electronic checks
Mobile wallets (Google Pay, Apple Pay, Samsung Pay)
Buy Now, Pay Later (BNPL)
While accepting credit cards is standard for almost all ISVs, what additional payment methods are offered will depend on the size of your company, your vertical or industry, your customer profile and a host of other factors. A knowledgeable integrated payments partner will help you determine which options are best for your business.
While integrated payment and embedded payment solutions significantly benefit consumers, the benefits to ISVs and SaaS providers are numerous.
There are many factors to consider when choosing an integrated payments partner, which will vary by what you want out of the relationship. Questions to ask yourself can include:
| Starting with these questions will help you determine the best integrated payments partner for your business – whether that is a traditional payment processor or a payment facilitator, also called a Payfac. |
Formed by payments industry veterans, Payfactory enables ISVs and SaaS vendors to effortlessly integrate or embed payment acceptance into their platform. A true Payfac-as-a-Service, Payfactory provides immediate onboarding, digital payment acceptance and is gateway-agnostic, meaning that you can quickly enable Payfactory on your current payment platform, or partner with Payfactory’s preferred payment gateway, Bluefin.
We believe that merchant processing for ISVs can be simplified without sacrificing support. Partnering with Payfactory means white-glove, human-centered service for our partners and their merchants. That’s the Payfactory difference. Learn more about our platform.