5 Payments Opportunities for ISVs in 2023

These attainable goals can improve the payment experience for customers while growing revenue for ISVs.


A New Year presents independent software vendors (ISVs) with fresh opportunities to invest in solutions, processes, and partnerships that help attract new customers, deepen existing relationships and generate new revenue streams. Hope is not a strategy, and success requires focus, measurable goals, and due diligence so that ISVs can celebrate accomplishments at the end of 2023.

Here are a few attainable goals that ISVs can quickly achieve to improve the payment experience for customers while growing revenue for their business.

1Take More Control of the Payment Stream

Increased demand for seamless payment experiences has fueled the growth of embedded payments by extending convenience to buyers and sellers. The embedded payments industry is expanding at a rapid pace, with revenues expected to reach $138 billion by 20261. Embedded payment solutions create a unified platform that allows payment information to automatically flow directly from point-of-sale systems, websites, and back-office software while streamlining end-of-day processes and reporting.

If you’re connecting to a platform like Stripe or Braintree to initiate payments through your software—or leaving it to customers to choose a stand-alone payments provider—you’re likely leaving money on the table. Monetizing more of the payment revenue stream will result in greater lifetime value from customers.

2Don’t Limit Payments to Online-only Experiences

People prefer when businesses provide a consistent customer payment experience across all channels. Many payment gateways’ APIs only support digital and e-commerce acceptance, requiring third-party connectivity for more complex in-person payments. The truth is that in-person transactions still make up 80% of retail purchases. Your growth plans should include businesses that also interact with customers in-store, curbside, via invoicing or on the go.

Do you service—or plan to service—B2B customers that accept commercial credit cards? Ensure you understand how specialized features like Level 3 processing and digital invoices will help you win high-value commercial customers.

3Support Integrated, Cost-effective Alternative Payments

The shift to digital interactions made online, on phones, and in apps has resulted in a steep increase in credit and debit card payments. While almost everyone agrees that card payments are more efficient than cash and check, the costs add up. According to The Nilson Report, the price of payment acceptance has risen a whopping 70% since 2010.

A practical and increasing way to control costs is to support secure Account-to-Account (A2A) direct bank transfers for purchases made online or through digital invoices. According to Nacha, more than 29 billion ACH Network payments were made in 2021, valued at close to $73 trillion.

Work with a payments partner that supports secure A2A transfers from a bank connectivity platform that simplifies the account enrollment and customer identification processes associated with ACH account setup. Ask your partner about solutions that allow businesses to activate a balance function that checks real-time funds availability, resulting in fewer rejects based on insufficient funds.

4Work With a Modern Cloud-based API Stack

A cloud-based API removes sensitive cardholder data from the software provider’s or business’ local systems and networks. An open-access RESTful API communicates with any native or SaaS software, allowing customers to accept credit, debit and ACH payments without leaving the core software interface. Further, ISVs simplify PCI DSS compliance by working with a PCI Level 1 provider since the onus of PCI standards falls to the systems hosted in their data centers.

Keeping data in the cloud offers multiple benefits. It increases security, limits liability, and improves the customer experience. Merchant Account Providers that use middleware put businesses smack dab within PCI scope. Middleware stores and processes credit card data on a local system, so the company may be more vulnerable to fraud and face annual or quarterly audits.

5Maximize Results with a Full-Service Payments Partner

Payment acceptance differs from core software functions such as sales, inventory or staff scheduling. Selling, onboarding and supporting payments requires specialized knowledge, so it’s essential to find a partner with an outstanding reputation to build trust with current and future customers. An experienced omnichannel payments partner can help ISVs—and their customers—better understand the financial and operational impacts of various payment acceptance practices.

Finding sufficient time, money and resources to internally develop the tools and expertise necessary to upsell and support specific add-on features like payments can pose a challenge for many ISVs. A full-service payments partner takes care of everything from pre-sales demos and marketing campaigns to pricing, onboarding, deployment, terminal setup, and live customer support. ISVs maximize merchant payment adoption and generate a valuable revenue stream without the overhead associated with registered PayFac and PayFac-as-a-Service models.

Find a payments provider that invests in your success and supports you and your customers throughout your journey. A partner with a single dedicated point of contact, live developer, and customer support will help you achieve your goals.

Kyle Ouzts is the strategic partnerships director of PayJunction, a full-service payment processor with a modern cloud-based payment gateway. PayJunction’s award-winning API allows developers to quickly integrate omnichannel payment acceptance in their software. PayJunction’s mission is to prioritize long term relationships over short term profit. That promise is backed by an award-winning customer service team and transparent pricing. The company was founded in 2000 and processes more than $7 billion in transaction volume annually across the United States.