How to choose the right payments partner for your software

If you’re a software developer interested in embedding payments into your products, you are not alone. ISVs (independent software vendors) across all industries are flooding the payments space with the goal of creating seamless, frictionless customer experiences to not only enhance the value of the software but also foster customer loyalty and retention.

When it comes to how customers travel through your product, streamlining each step of that journey is paramount, especially the transaction process. Taking on the responsibility of owning this step, however, means putting your trust in the partner that facilitates all those payments. With the influx of payment companies popping up in the market and with the speed at which financial services are evolving, who you choose to interface with can mean the difference between growth and collapse. At its core, this decision comes down to two main factors: good product and good partnership.

The simplification of payment solutions in the software industry

The software industry is currently witnessing a significant transformation, particularly in terms of integrated payment solutions. Historically, software providers maintained a neutral stance towards payments and financial services, often shelving the idea away as “too complex,” relying instead on specialized payment processors. Today, however, a shift has occurred.

Rather than taking a hands-off approach to financial services, ISVs are diving headfirst into owning the customer experience – including payment solutions. Thanks to technological advancements in payment processing, this shift aims to create a seamless and frictionless customer experience, which not only enhances the value of the software but also fosters customer loyalty and retention.

What developers should look for in a payments partner

To meet the rising demand for integrated payment solutions, simplifying what were once complex systems in favor of frictionless experiences, a trustworthy payments partner is key. There are several factors to consider for a smooth integration and seamless payment experience for your users – here are a few: 

1. Composability and scalability

Choose a payments partner that can scale alongside your business as it grows. Ensure that they can handle increased transaction volumes without compromising on performance or reliability. For example, Deluxe offers its software clients assistance in navigating macroeconomic challenges such as the need for growth and profitability with fewer resources.

2. API integration

Verify that the payments provider you’re partnering with offers robust APIs (Application Programming Interfaces) that are well-documented, easy to integrate and provide flexibility in customization. This will allow you to embed payment functionalities directly into your software with minimal hassle.

3. Security and compliance

In the world of payments, security is king. Choose a partner that complies with industry standards such as PCI-DSS (Payment Card Industry Data Security Standard) and offers features like tokenization and encryption to protect sensitive payment data.

4. Payment methods

Look for a partner that supports a wide range of payment methods including credit/debit cards, digital wallets, bank transfers and alternative payment methods. This ensures that you can cater to diverse customer preferences and increase conversion rates.

5. Fees and pricing

Before signing up with a payments partner, ask them about their fee structure, including transaction fees, monthly subscription fees, setup fees and any other associated costs. Compare pricing across different providers to ensure competitive rates that align with your business model.

6. Developer support and documentation

Evaluate the level of developer support provided by the payments partner, including access to technical documentation, developer forums and dedicated support channels. Responsive and knowledgeable support can expedite the integration process and troubleshoot any issues that arise.

7. Customization and branding

Consider whether the payments partner offers customization options that allow you to maintain brand consistency and provide a seamless user experience within your software. For example, Deluxe’s goal is to present a behind-the-scenes utility, rather than a standalone entity. This strategy ensures that customers enjoy a cohesive experience that feels native to the software they use.  

8. Proven experience

Lastly, consider reputation and reliability. Look for reviews and testimonials from other businesses that have integrated their services. Choose a partner with a proven track record of stability, uptime and customer satisfaction.

By carefully evaluating these key elements, you can select a payments partner that aligns with your business goals, technical requirements, and user expectations, enabling you to seamlessly embed finance into your software product, and ultimately, drive growth.