Why Integrated Payments Matter for Software Providers and ISVs

Integrated payments enable software providers and ISVs to seamlessly add secure payment features directly into their platforms. 

This not only boosts efficiency and enhances the user experience, but also helps providers stay ahead in a fast-moving, competitive market.

The modern payments landscape is evolving rapidly, driven by the emergence of technologies, changing consumer preferences, and the growing demand from merchants for more advanced, frictionless and personalized experiences. With that comes new and heightened expectations for software providers and independent software vendors (ISVs) to combine payment processing capabilities with business software, making it possible for users to take payments within the systems they are already using for other business functions. It’s no longer enough for payment systems to just process transactions, they need to be seamless, secure and easy to use. In other words, payments should feel like a natural part of the experience and overall business workflow, not a separate function. When merchants can manage payments and other aspects of their business from one centralized platform, they can stay focused on their customers instead of getting bogged down by operational inefficiencies and disjointed tools.

To keep up with increasing demands for innovation, convenience and a seamless user experience, ISVs must adapt and embrace integrated payments to retain existing customers and stay competitive. As ISVs seek to build a more robust software solution with integrated payments, features like flexibility, scalability, fraud prevention and PCI compliance are key.

That’s where today’s new generation of integrated payments solutions comes in. These tools enable developers to integrate and embed payment processing capabilities directly into their software, while keeping sensitive data safe with multilayered security that includes point-to-point encryption (P2PE) and tokenization. “Tokenization removes cardholder data from the business environment to secure payments simply and effectively, which is equally important for merchants and software developers for whom data protection is critical,” said Nicholas Aceto, SVP of Technology at Fiserv. “It safeguards customer payment information while providing a better overall user experience.” By adopting these solutions, software providers can help merchants deliver the fast, safe and smooth payment experiences their customers expect – while also minimizing the burden of PCI compliance.

The shift toward integrated payments

Integrated payments are transforming the payments industry, leaving traditional stand-alone systems behind. Merchants are embracing technology that not only handles payments but also streamlines operations by bundling value-added services and integrating with other aspects of their business. Consider it a unified solution for managing it all. ISVs excel in this space with a deep understanding of their niche market, which allows them to develop solutions specifically designed to meet the unique needs of their audience. When combined with integrated payments, this approach gives them a powerful advantage.

By offering a range of Clover payments hardware, from countertop terminals to portable and mobile devices, Fiserv provides flexibility that caters to the specific needs of each ISV's software and business needs, such as mobile payments, contactless options and streamlined checkout.

Sean Maney, co-founder of BookedBy, which specializes in POS and booking software for spas and salons, says that integrating payments through Clover devices from Fiserv has helped his customers. “With Fiserv, everything is ready to go for our users. They get payments, Clover hardware and BookedBy software all-in-one to run their business,” he said, adding that Fiserv support was essential in navigating the technical demands of integration.

Benefits of integrated payments for software providers and ISVs

For developers, integrated payments lead to an improved and streamlined process by connecting directly with other core functions, such as inventory management, payroll and time tracking, creating a cohesive, all-in-one solution for their clients. “It’s really a fully embedded payment experience that communicates with other parts of their business,” said Crystal Tran, VP of Product Strategy & Value-Added Services, ISV at Fiserv. Offering an integrated payment solution can differentiate an ISV from competitors who may still rely on siloed payment systems. Ultimately, it’s a win-win scenario for merchants, who benefit from a more convenient user experience, and software providers, who gain a competitive advantage and stronger customer relationships.

This streamlined integration also allows for real-time data transfer, reducing data entry errors and minimizing the need for manual reconciliation. Improving accuracy and efficiency through a smooth payment process can also result in increased customer satisfaction and higher conversion rates as friction is removed. Moreover, access to payment data within the business software unlocks valuable insights, providing a clearer understanding of customer behaviors, spending patterns and financial performance. Developers can leverage these insights to build enhanced analytics dashboards for their clients, enabling data-driven decision making on product development priorities and targeted marketing.

Integrated payments also bring a significant financial benefit for ISVs: the chance to generate new revenue. By earning a share of the transactions processed through their software, ISVs can turn payment integration into a major income stream. This added revenue not only enhances the value of their platform but supports growth and innovation too, making integrated payments a smart and strategic move for any software provider.

How integrated payments drive business growth

Integrated payments empower software providers to expand their capabilities by offering value-added services such as ACH processing, cash advance programs, card account updater and surcharging. These additional tools go beyond basic payment integration, enabling software providers to create new revenue streams while also helping merchants save costs by consolidating systems and reducing labor needs. The embedded nature of these tools makes it easy for merchants to access them, creating “stickier” relationships that increase retention.

Integrated payments also provide ISVs with valuable data insights to better understand market trends and identify growth opportunities, reducing the reliance on traditional “feet-on-the-street” sales approaches. For example, merchants using platforms with real-time reporting can quickly pinpoint underperforming products or services and make immediate adjustments. This agility delivers measurable financial benefits, making integrated payments a powerful driver of business growth for ISVs and their clients alike.

The role of APIs in integrated payments

Application programming interfaces (APIs) help to enable payment integration for ISVs. APIs provide a set of programmatic instructions that allow different software systems to communicate (like Google Translate, if you will), and ISVs are leveraging them to seamlessly incorporate payments functionality into their platforms.

“Software developers tasked with creating integrated payments experiences need a simple and flexible API to add payments functionality and customize the payment and user experience to the flow that meets their needs,” said Bryan Greene, Head of ISV Solutioning and Partner Activation at Fiserv.

By leveraging APIs, ISVs can build a consistent, branded payment experience that aligns with their core software, whether it’s for booking appointments, payroll or transactions. 

What to look for in an integrated payment provider

When choosing a payments service provider to integrate with, developers and ISVs should prioritize factors like industry expertise, diverse payment options and easy integration through developer-friendly APIs and clear documentation. These make the integration process so much smoother. A payments provider that’s knowledgeable, responsive and offers solid support can also be invaluable. Remember, flexibility and scalability is key to giving customers as many options as possible when it comes to processing payments. Bonus points if they also have flexible monetization options, like profit-sharing, incentives or managed PayFac solutions, so you can pick a revenue-sharing setup that fits your business. Transparent pricing and customizable billing are also a must to help businesses scale as they grow.

But selecting a great provider doesn’t stop at payments. Consider future opportunities for expansion and innovation – including the support you’ll need to scale your offering. Look for added value, such as sales enablement, partner programs, webinars and dedicated growth support for merchant acquisition and onboarding. A full suite of omnichannel payments options — covering everything from software to specialized devices — can make all the difference in creating a seamless customer experience. And, of course, payments and data security are non-negotiable. Providers with strong PCI-compliant solutions, robust security measures and breach protection give ISVs, merchants and their customers peace of mind.

Integrated payments are fundamentally changing the way software and payments work together. It’s all about seamlessly weaving payment solutions into non-financial services, making the process almost invisible to users but still incredibly effective. When evaluating partners, look for proven solutions and providers that offer the latest tools and create payment experiences that feel effortless yet impactful.