The Power of Partnerships: Payment Providers and Independent Software Vendors
As we enter 2025, the UK’s fintech sector is poised for a resurgence following a prolonged period of economic downturn and stands to benefit immensely from the government’s commitment to embrace innovation. With the potential to unlock nearly £330 billion over the next five years, the timing is ideal for businesses to forge new partnerships, especially within the payments sector.
A particularly promising alliance is between independent software vendors (ISVs) and innovative payments companies. By embedding seamless and secure payment services, these partnerships not only enhance the customer experience but also benefit businesses directly. ISVs can deepen engagement, foster customer loyalty, and ultimately drive growth for both their businesses and the communities they serve. In fact, our research indicates that a significant 70% of small businesses are eager for these types of solutions.
The potential benefits of such collaborations are far-reaching. Let’s delve into the myriad possibilities that these partnerships can unlock.
Integrated Payments for ISVs
Integrating payments into a product can be a complex and resource-intensive endeavour. For ISVs, navigating the world of payments can often seem daunting. The process requires significant investments in time, capital and specialised knowledge in payment technologies and regulatory compliance.
However, ISVs often overlook the potential benefits of integrating a payment solution into their product offering. By partnering with a payment company, ISVs can leverage a robust, pre-built infrastructure that has been thoroughly tested and proven in the market. This allows them to concentrate on their core competencies, enhancing the customer experience and offering their clients a seamless and reliable payment solution.
Our research indicates that a substantial portion of small businesses across the UK and Europe express interest in financing their needs through an integrated offer from their SaaS provider. Moreover, these partnerships frequently provide support and resources to assist ISVs in integrating and managing payment systems effectively, enabling them to deliver exceptional service to their end customers. The demand is clear, and the solution is readily available.
What concerns might ISVs have?
While the advantages of integrated payments are evident, some companies may hesitate due to perceived complexities. A common concern is the fear of losing control over the payment process. However, these concerns are often unfounded and stem from misunderstandings.
ISVs rarely build their own payment software from scratch, as it is both costly and time-consuming. Instead, they must choose between embedding a third-party payment solution or forgoing one entirely. While some ISVs may be reluctant to integrate payments, believing it’s best left to their customers, many will need to consider the various embedded payment vendors. These vendors offer varying levels of partnership and willingness to collaborate with ISVs.
Concerns about ownership are also largely unwarranted. While using a third-party provider means external management of the payment infrastructure, it doesn’t equate to a loss of control over the customer experience. In fact, partnering with a specialist can enhance the customer experience by ensuring a smooth, secure, and reliable payment process. ISVs retain full control over how they integrate and present payment functionality within their products, preserving their brand identity and user experience.
Furthermore, partnerships with payment providers offer additional benefits such as advanced fraud detection, customer support, and ongoing innovation. By investing in their technology to stay ahead of industry trends and regulatory changes, these partners maintain a competitive edge. This enables their partners to benefit from the latest advancements without significant investments of their own.
The collaboration between ISVs and payment providers fosters a powerful value proposition, already evident in practice. This partnership empowers ISVs to deliver comprehensive payment solutions without the associated development and compliance overhead. In today’s rapidly evolving FinTech landscape, where agility and expertise are crucial to meet rising consumer expectations, this model proves invaluable.
By harnessing the strengths of established payment companies, ISVs can elevate their product offerings, enhance customer satisfaction, and accelerate growth. This strategic partnership approach is essential for thriving in today’s competitive market and plays a pivotal role in driving innovation and fostering success that benefits entire communities.
Partnerships are not just smart – they’re necessary
The synergy between ISVs and payment providers creates a powerful value proposition – and it’s already in practice. It allows ISVs to offer comprehensive payment solutions without the associated development and compliance burdens. This model is perfect in the fast-evolving Fintech landscape, where staying competitive requires both agility and expertise to continually meet higher expectations from consumers. By leveraging the strengths of established payments companies, ISVs enhance their product offerings (not detract them), improve customer satisfaction, and accelerate their growth.
On a broader scale, a strategic partnership approach is a necessity to thrive in today’s competitive market and plays a crucial role in driving innovation and success that helps communities to thrive.To learn more, visit: https://www.cashflows.com/
About the author
Paul Clarke Chief Growth Officer at Cashflows.
Paul has a wealth of experience successfully leading product, business strategy, and innovation functions in the payments, eCommerce, and digital sectors. He was previously Executive Vice President for Product and Innovation at international payments solutions provider: Network International. Prior to this, Paul held leadership positions at key payment organisations, such as Barclaycard, Elavon, and Worldpay.
Having joined Cashflows in 2021, Paul is responsible for leading the product proposition, strategy, and commercial go to market delivery functions of the business.
About Cashflows
Cashflows is a new breed of fintech payments company that makes it easy for small corporates and SMEs to accept card and digital payments – online, in store and on the move.
Through its own acquiring platform and gateway, Cashflows provides a safe, secure ecosystem for processing payments right across Europe. Cashflows products and services are built with the latest technology and the future in mind, always to meet the specific needs of partners and customers.
Learn more at www.cashflows.com