With the convergence of payments and software technology, ISVs that integrate payments with their platform reap the benefits of increased revenue streams, stronger company valuations, and a stickier relationship with their end customers. The benefits for software companies are numerous. However, one could argue that, in 2023, simply integrating payments is no longer a competitive differentiator or a new concept, but rather, table stakes. So, how do ISVs continue to increase market share in a competitive and progressively crowded marketplace?

In a market valued at USD 894.7 million in 2022 with a projected CAGR of 9.63 percent (roughly USD 1.54B) by 2028, a strategic approach to offering a holistic solution that provides both merchants and end customers more value is critical.1 Beyond offering payment processing functionality, an ISV needs a partner that provides a footprint for growth via new partner models, distribution channel expansion, and ancillary functionality such as embedded financing and banking solutions. Each factor offers differing ways to monetize payments that lead to the same end result: maximizing your revenue potential. Let’s take a closer look.

Your payments journey – the right partner model for your business now and in the future

The type of partner model an ISV selects initially may be dependent on their maturity in the payments space. Select a payments partner with a flexible program that can meet an ISV’s needs – whether they’re looking to build revenue at a low point of entry with less burden or a full-scale payments company that acts as the processor to their end merchants. Different monetization frameworks include:

  • Referral – refers acquiring and/or gateway business with a revenue share
  • Agent – reseller agreement with revenue split
  • ISO – registers with card brands, additional qualifications, revenue split
  • Payment Facilitator – signs Master Service agreement to provide payment services for sub-merchants

Expanding distribution channels through your partner’s payment ecosystem

The advantage of integrating payments with an established partner means access to a vast network of gateways and software solutions that provide additional functionality. Whether it’s a vertical-specific solution such as practice management systems or feature-based functionality like text-to-pay, your partner can provide you with new ways to monetize payments.

It’s important to note that with those added connection points, data security is paramount to your bottom line and reputation. An acquirer has the domain knowledge and expertise to keep cardholder data safe and mitigate the risk of data breaches. From point-to-point encryption (P2PE) to tokenization, safeguarding against fraudulent activity should be part of any payments strategy.

Leveraging the next generation of embedded finance and banking solutions

As previously mentioned, most software companies know, and have seen the substantial benefits of integrating payments. Embedded finance solutions take this concept to the next level and provide the power to provide additional functionality your software users find valuable. It’s why the global revenue from embedded payments will reach USD 59 billion in 2027, up from $32 billion in 2023.2

Whether it’s access to accounting software, buy now, pay later (BNPL) offerings, or liquidity solutions that help your merchants manage their business more effectively, embedded solutions provide a ‘stickier’ footprint while generating additional revenue. A partner that has the infrastructure in place to scale your business while providing the flexibility to adapt to market changes is key to your success.

U.S. Bank | Elavon – Where innovation and stability meet

Backed by the strength and stability of U.S. Bank, Elavon can provide the best of both worlds – the financial services infrastructure of one of the country’s most established banks and the agility needed to navigate the competitive software industry and constantly evolving payments industry. Hundreds of connection points, partner programs that enable you to graduate to the next level, and an incubation program unique to the industry means your payments journey is one of a kind. Connect with us now to learn more.


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  1. Source: marketwatch.com

  2. Juniper Research