By Allan Lacoste, EVP of Partnerships & Marketing, Nuvei
Independent software vendors (ISVs) seem to be in a perpetual growth cycle. As they move toward more SaaS offerings for their clients, the market for cloud software is expected to exceed $100 billion in 2018. But for all this growth, some ISVs continue to leave money on the table by failing to integrate payment processing into their software offerings. Mobile payments are growing at a rate of 80% per year, with in-app purchases and store app payment capabilities helping drive the growth. Software offerings that do not take advantage of this trend risk losing a large volume of potential revenue.
More and more, customers are looking for payment simplicity and functionality. Software and apps that provide payment processing enable users to remain in the system to make payments, providing an immediate, user-friendly payment experience. And for those selling to businesses, enabling companies to send and receive payments through the software they are using speeds up the process and adds to the reasons to purchase from a particular vendor.
For ISVs, this also means that building in payment processing technology into their software offerings creates a potentially powerful revenue stream for the vendor. Every electronic payment processed generates a fee. If the software allows customers to run payments directly within or through the system, it creates an ongoing revenue stream for the vendor beyond the purchase price and license fees.