Integrated Software Vendors

ISV Payment Integration: Benefits, Best Practices, and Trends for 2022

Murray MacGillivray
AVP, Strategic Partnerships

With explosive growth in the online payment sector, consumers have come to expect payment processes to be fast, easy, simple, and safe. No matter what platform is used to execute the transaction.

With that in mind, today’s generation of independent software vendors (ISVs) need to stand out among their competitors by delivering a seamless and secure transaction experience.  If, as an ISV, you expect to be successful, you need to deliver an integrated payment experience as smooth and friction-free as possible. 

What Are Integrated Payments? 

Integrated payment solutions are systems that are embedded directly inside software applications, acting as an interface to a payment gateway. This allows customers to make payments directly through the software without having to go through a third-party system. By using integrated payment processing systems, Nuvei’s ISV partners can generate invoices, accept online bank payments, create receipts, and pay bills directly through custom software platforms. 

What Are the Benefits of Integrated Payments?   

Online payment processing solutions are constantly evolving. The need to keep abreast of a shifting business landscape and changing consumer needs has never been greater. Integrated payment solutions are creating a more seamless user experience while simultaneously helping generate business revenue.  Integrated payment solutions have a wide range of benefits for ISVs and for their customers. Here are some of the benefits and best practices:

1. Integrated Payments Save Time and Money, While Increasing Revenue 

Managing finances can be expensive and tedious, but integrated payments allow banking information to be tokenized and stored.  This means it doesn’t need to be entered every time a new payment is processed. The consumer’s data is automatically entered and retrieved when needed.  This saves time and hassle for everyone involved, particularly for recurring payments.

2. Integrated Payments Increase Your Viability in a Crowded Marketplace 

Adding an option such as an integrated payment solution gives ISVs a leg up in the payments sector—especially when payment processing solutions are integral to business operations. 

Bank payment processing for ISVs is beneficial for a range of reasons, including:  

  • Adding value to an ISVs product which is great for owner exit at a higher payout
  • Reducing how much work clients do to manage their businesses
  • Building ISVs expertise in integrated payment solutions to be able to provide the best customer support possible. 

3. Integrated Payments Are Secure, Fast, and Safe 

While digital payment options have their advantages, there’s always the lingering fear of data security breaches.    

With integrated payment solutions, ISVs can provide technology that is regulatory compliant and tokenized without handling sensitive payment information. At Nuvei, tokenization is a solution that we use to ensure consumers remain protected while enjoying this increased convenience. For independent software vendors, it can be challenging to integrate new software to meet the needs of their clientele without losing business or causing mishaps in daily transactions.   

With payment trends evolving at a rapid pace, consumers are being conditioned for instant gratification when buying goods and services. The ability to offer enterprise-class integrated payments is key to future-proofing and scaling an ISV’s business. Seamless integration of payment automation and reconciliation and real-time data analytics adds value to any ISV business proposition.    

4. Integrated Payments Are the Best Way to Combat Payment Fraud

The Federal Reserve report on US payment fraud found that credit and debit card fraud is on the rise. According to the report, “The overall rate of payments fraud, by value, was rising even as the total value of noncash payments was rising in the United States in recent years.  As the number of payments has risen, the likelihood that a payment is fraudulent has also increased.”   

The report says that between 2012 and 2015, instances of credit card payment fraud rose from 14 million to 30.4 million.  Further, debit card payment fraud instances rose from 13.7 million to 28.7 million. A major increase in card-not-present fraud exploded in the United States, up 36 percent between 2015 and 2016.  The total value of the loss was $4.57 billion .

Apart from falling victim to fraud themselves, there is a risk that customer perception damages merchants’ reputations. It’s vital that you project stability and safety, so that potential customers feel at ease making purchases through your platform. 

5. Integrated Payments Provide a Superior Consumer Experience 

The Customers 2020 report by Walker projected that customer experience would be at least as important to consumers as cost. Negative shopping experiences are very likely to result in the loss of a customer. According to a Gartner survey, many retailers are aware of this trend, and 75% of respondent companies increased their customer experience technology investment. 

Any problems in the shopping experience can result in a lost sale.  Any factors that contribute to abandoned online shopping carts need to be recognized, addressed, and avoided if you want to maximize your profit potential.   

6. Integrated Payments Can Boost Your Bottom Line

According to a recent aggregate study, 69.80% of online shopping carts are abandoned without purchase. Let’s consider that for a moment.  Can you afford to lose almost 7 in 10 customers, purely because they failed to commit upon reaching the final stage of purchase?  There are reasons for shopping cart abandonment that are unrelated to the payment process, but 55% of customers will specifically abandon their purchase if they are asked to re-enter payment information. When 18% cite a “complicated checkout process” or 17% “didn’t trust the site with credit card information”, are you willing to absorb the loss?  Finally, when 7% complained that “there weren’t enough payment methods”, is that an acceptable loss?  

According to the data from the report above, abandoned shopping cart loss to e-commerce retailers amounts to $18 billion a year.  While you’ll never be able to recover 100% of that amount, surely that’s not money you’re willing to just leave on the table.  With proper integrated payments, you’ll maximize your total number of completed sales.    

How Does Nuvei Help ISVs Integrate Payments?

Nuvei partners with many ISV and SaaS providers across Canada and North America, enabling direct bank payments through a simple API integration. This allows you to streamline sending, requesting and reconciling payments with data-rich, safe and efficient tokenization technology. With a payment processing partner like Nuvei, you can anticipate your future needs with simple, secure integration built directly into your software platform. 

Our ISV Partner Program provides a supportive environment where ISVs can truly thrive, with flexible partnership models to fit their business.

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Murray MacGillivray
AVP, Strategic Partnerships
Murray has over 20 years of experience in indirect sales channels and merchant services. He enjoys the fast-paced payment processing industry for the opportunity it provides to the entrepreneurial spirit.

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