How ISVs in Niche Vertical Markets Can Integrate Payments Successfully

With the right approach and partnerships, ISVs can thrive in niche sectors, shaping the future of integrated payments and customer satisfaction.

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In today’s rapidly evolving business landscape, software vendors operating in niche vertical markets hold a unique position to offer unparalleled customer experiences. ISVs (Integrated Software Vendors) can leverage integrated payment solutions to set themselves apart from competitors and deliver exceptional value to their clients. Here’s what ISVs, particularly those in specialized sectors, need to know about providing payments. 

Offer a Customer-Centric Experience 

When ISVs offer customer-centric solutions, it allows them to deliver customized value that is cost-effective and more scalable than most merchant acquirers, positioning them as a clear winner for merchants servicing specialized verticals. 50% of small businesses now use ISVs as payment providers, and 15% are transitioning to an ISV provider.  

ISVs involved in niche markets have an incredible opportunity to present unified, world-class experiences to their customers. By integrating payments directly within the software or app, ISVs can further enhance the value of their all-in-one niche solution for their customers by maintaining their branding, ensuring security, and streamlining the customer journey. They can also keep customers within the site, leading to increased customer adoption and loyalty.

ISVs must also determine what matters most to them and their customers regarding care. Do they want extended customer support hours? An account management team to assist with business strategy? Is integration support available? What about co-marketing opportunities? Niche startups with lean resources will benefit from access to human support teams rather than an automated machine or chat bot. A solid formula to start is to choose a payment partner that provides excellent customer service. ISVs should listen to what their customers truly want, and personalize their platform and support to fit their niche market.

Provide vertically-aligned products

While ISVs need to provide standard payment capabilities, like credit card processing, there are specific payment products niche markets will appreciate. 

For example, those servicing the childcare, education, and camp industries should ensure they offer their customers the ability to process bank transfers. Students and parents typically send tuition and registration fees through EFT/ACH payments, rather than through credit cards. This holds true for software providers catering to other vertical markets such as gym management, sports leagues, payroll and expense management, and property management. All these industries typically pull and push funds from or into their customers’ bank accounts.  

Likewise, businesses in many of these industries rely on recurring payments for services like memberships and subscriptions. For instance, many non-profit organizations rely on recurring donations and will look for this in a software’s offerings. Given this, ISVs should choose a payment provider that has simple and reliable recurring billing capabilities. 

Businesses in niche verticals will often range, so it’s important to provide products that make sense for those starting out and those who are well established. For example, offering no-code solutions such as a hosted checkout, payment links, or a virtual terminal will appeal to smaller merchants. Larger clients will appreciate sophisticated and customizable products such as integrated custom checkout products and robust APIs they can build from.

Choose a flexible payment provider 

ISVs should select payment providers that offer flexibility and scalability to accommodate businesses at different growth stages. Whether serving startups or enterprise-level clients, ISVs need payment solutions that can scale alongside their customers’ needs and appeal to a diverse range of businesses.

The chosen payment provider should also come equipped with expertise on the vertical the ISV is serving. A payment partner that is familiar with the nuances and requirements of the software’s specific industry will be better prepared to offer tailored solutions that meet the unique needs of their clients.

If the provider is bank-agnostic, even better. Bank agnostic means merchants with existing bank accounts won’t have to worry about switching accounts when processing through an ISV’s platform. Providing a hassle-free solution is vital.

Don’t forget to evaluate a provider’s fraud tools, reliability, and trust within the market. Industries with higher fraud rates, such as the order-ahead and food service industry, will rely on ISVs and their payment provider to keep them safe. Look for a proven track record, excellent customer support, and high standards of safety and compliance when choosing who to partner with.  

Software vendors operating in specialized industries must realize the unique advantages they can offer and build upon that. To provide the best experience to those in niche vertical markets, ISVs must listen attentively to their customers, personalize their payment offerings, and remain dedicated to exceeding customer expectations. With the right approach and partnerships in place, ISVs can continue to thrive in these sectors, shaping the future of integrated payments and customer satisfaction.
 

Justin Passalaqua

Justin Passalaqua is Managing Director of Worldline North America. Worldline’s corporate purpose is to design and operate leading digital payment and transactional solutions that enable sustainable economic growth and reinforce trust and security in our societies. Worldline makes them environmentally friendly, widely accessible, and supports social transformation.
 


Justin Passalaqua is Managing Director of Worldline North America. Worldline’s corporate purpose is to design and operate leading digital payment and transactional solutions that enable sustainable economic growth and reinforce trust and security in our societies. Worldline makes them environmentally friendly, widely accessible, and supports social transformation.