By Allan Lacoste, EVP of Partnerships & Marketing, Nuvei
Companies are always looking for ways to grow their income streams, and adding new products is a proven method of doing so. It’s even better when those products come ready to roll out to your customer base, without requiring investments of time and money for development and testing. Research shows around 51% of integrated software vendors (ISVs) serving both B2B and B2C environments have enabled direct payments as a feature of their products. It’s possible to earn revenue from payments processing in several ways, and the best option for your company depends on various factors.
Before integrated software vendors dive into the payments processing pool, it’s important to determine whether they should form relationships with payments providers, or if they should become payments providers themselves. The latter is obviously more lucrative because there are fewer entities sharing the same revenue pot, but it also entails a lot more. Here’s what you need to know.
For an ISV to become a payment processing provider, you'll need to develop or acquire the competencies needed to operate the business. There’s also the customer service factor to consider, since payments processing is highly interactive and financially sophisticated. It’s essential for integrated software vendors to evaluate whether gearing up for these functions is financially viable, and if it will pay off in the long term.