For ISVs, independent software vendors, adding an integrated approach to payments to your software packages could be a game changing move, as it offers a broad range of benefits for end users and merchants like enhanced security and user experience, all of which serves to increase the value of your software. Find out everything you need to know about the benefits of integrated payment solutions for ISVs.
What is an ISV?
Firstly, you’re probably looking for a bit of additional context around the use of the term ISV, so, let’s take a more in-depth look at the meaning of ISV. It stands for independent software vendors, but in essence, ISV is just another term for software publishers or individuals/organisations that develop, market, and sell software solutions that are designed for either niche or mass markets. So, now that you know a little more about independent software vendors, let’s explore some of the reasons why adding an integrated payment solution to your software could be beneficial.
Understanding integrated payments
First question – what are integrated payments? Although it’s a broad term, essentially, integrated payments are payment processors that are embedded within other software programs used by businesses, such as accounting, customer relationship management (CRM), and payroll. In other words, they won’t be redirecting customers to a third-party payment processor anymore, but processing payments via an embedded payments function. This means every company will end up with a unique integrated payment system, because each business has a specific hodgepodge of digital processes.
Basically, integrated payment solutions are designed to streamline payment processing and customer experience, optimising the back end of operations to keep everything working together in harmony.
Why are integrated payment solutions beneficial for ISVs?
There are many reasons why an independent software vendor may choose to add an integrated payment solution to their software package. Here are five of the key reasons why ISV payments could be the right move, providing added value not just for ISVs, but merchants and end users as well:
Improved security for end users – Cyber security is a key concern for everyone. Every time a customer is redirected to a third-party processor, there’s a chance that their sensitive financial information could be at risk. ISV payments, in combination with improved security measures can enhance security via the use of tokenization, providing end users with peace of mind whenever they make a transaction.
Enhanced user experience – In addition, integrated payment solutions can help to provide a seamless user experience, ensuring that customers can checkout, enter their payment information, and complete their purchase on the same page. This is in stark contrast to a multi-step payments experience that sends customers to another site.
Quicker and more efficient for merchants – If a merchant is handling their accounting manually, an integrated payment solution could offer a significant improvement. Not only can integrated payment solutions help merchants get paid quicker, but it can also automate payment record entry, saving time and labour.
Generate additional revenue and increase valuation – By adding functionality around payments, ISVs can generate additional revenue and set their software apart from the competition.
As you can see, there are a broad range of benefits associated with ISV payments. It’s better for end users, merchants, and ISVs themselves, which is why independent software vendors should consider integrating payments when developing software for e-commerce customers.
We can help
GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.