Embedding payments for growth: how ISVs can scale through vertical focus and partnerships

By Josh Bennett, VP, Partner Business Development

Embedded finance, embedded commerce and integrated payments are different names for the same shift: integrating payments and financial services into your platform to deliver more value to customers and unlock recurring revenue streams. As Independent Software Vendors (ISVs) position themselves for success in a crowded and dynamic marketplace, building a comprehensive embedded commerce strategy is key to scaling your distribution channels and maximizing revenue potential.

Regardless of terminology, embedded payments offer added value to customers, strengthen long‑term relationships, and provide a more holistic solution. According to Future Market Insights,* the embedded finance sector will grow from USD 85.8 billion in 2026 to USD 370.9 billion by 2036, representing a 15.8% compound annual growth rate (CAGR) as expanding embedded finance use cases accelerate adoption.

From integrated payments to financing solutions, many ISVs need a strategic plan to incorporate the functionality that makes sense for its vertical and customer base. Let’s take a closer look at how implementing the right strategy can help you stand out from competitors.

Growing your distribution footprint with a vertical partner approach

You know the expression, “jack of all trades, master of none” -- a sentiment that underscores an important reality for businesses competing in increasingly complex industries. Rather than trying to create a “one size fits all” software platform for your clients, it is important for ISVs to take a vertical or vertical-adjacent approach to capturing market share. This creates a compelling value proposition for businesses that need solutions that address specific challenges, industry regulations and operational inefficiencies.

Healthcare provides a clear example. While EHR vendors have saturated the market with electronic health record functionality, providers still struggle to manage data across EHRs, payers, labs, devices, and applications. For ISVs, this fragmentation creates an opportunity. ISVs that embed healthcare payments functionality directly into EHR workflows can address persistent financial and operational gaps – automating accounts receivables, enabling digital and text-based payment options, and improving revenue cycle management. By extending beyond record-keeping into the entire payments lifecycle, these platforms can differentiate in a crowded healthcare IT market while delivering measurable value to providers.

For many software companies, partnerships offer a practical path to navigating the complexity of the healthcare ecosystem. By focusing on core competencies while integrating complementary healthcare or payments technology, companies can reduce development timelines and accelerate speed to market. A partnership model also creates mutual value, enabling both organizations to benefit from shared roadmap innovation, referral partner programs and expanded sales distribution channels.

Whether it’s access to embedded healthcare payments, flexible point‑of‑sale lending or text-to-pay functionality that help providers manage their businesses more effectively, embedded solutions create a stickier footprint while generating incremental revenue. Success depends on partnering with a provider that offers the infrastructure to scale alongside your business—while remaining flexible enough to adapt as market needs evolve.

Elavon by U.S. Bank: Smarter payments that move your business forward

Backed by the strength and stability of U.S. Bank, Elavon delivers the best of both worlds: the financial services infrastructure of one of the nation’s most established banks, combined with the agility required to compete in a fast‑moving software and payments landscape. With hundreds of integration points, partner programs designed to support growth at every stage, and deep vertical expertise, Elavon offers a payments journey tailored to your business. 

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