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Home » Blog » Why Forming Payment Partnerships is Beneficial for ISVs

Why Forming Payment Partnerships is Beneficial for ISVs

  • January 28, 2025

Independent software vendors (ISVs) are increasingly integrating digital payments into their products. And rightly so — the total annual value of digital transactions is expected to hit $36.75 trillion by 2029. 

In this post, we’ll be exploring how a payment partnership can help ISVs get a slice of that action. Partnering with an experienced payment services provider (PSP) can help ISVs unlock extra revenue streams, speed up their cash flow cycle, and even enhance the customer experience. 

If you’ve been wanting to include integrated payment solutions in your software products but lack the necessary time, money, or technical skills, a payment partnership could be exactly what you need. 

What is a Payment Partnership for ISVs?

In a nutshell, a payment partnership looks something like this. An ISV realizes the potential value of digital payments to their business and the improvement they can make to customers’ payment experiences, and wants to enable payment functionality in their software solutions. 

However, they don’t have in-house employees with the right skill sets, or don’t want the hassle of managing details like PCI data compliance. So, the ISV reaches out to a seasoned PSP with payment integration capabilities to help them connect payment directly to their products. This allows merchants to accept payments right in their app or software via credit cards, debit cards, ACH transfers, text message, and other payment methods. 

In addition to integration assistance, payment partnerships can take a range of shapes depending on what best suits the companies involved, including: 

  • Referral agreements: ISVs can refer their customers to the payment partner and receive a commission on every successful referral. 
  • White-label solutions: PSPs can co-brand or white-label  technology that software vendors can brand as their own, allowing them to stay top-of-mind during every phase of a customer’s interaction with their products.
  • Revenue sharing models: Some payment partnerships involve the ISV earning a percentage of the revenue earned on each merchant account. Especially for software vendors with a large customer base, this can open the doors to significant additional revenue.

Why Should You Want a Payment Partnership in 2025? 

Consumers want a seamless and secure payment experience that doesn’t require them to navigate out of the website or app they’re using. Leveraging a payment partnership with a PSP is a reliable ticket to that destination, but that’s hardly the only benefit. 

Here’s a snapshot of what a payment partnership can do for you in 2025. 

The right partnership can help you scale more quickly. 

PSPs have scalable payment infrastructure. This means that as you continue to grow, you won’t run into any problems handling the increased transaction load — a common issue for software companies.  

Focus on what you do best, and let your partner handle payments. 

A payment partnership gives you the opportunity to focus on growing your business and improving your products, instead of stressing about things like chargebacks, managing transaction risk in the merchant portfolio, and ensuring compliance with card brand rules and regulations.

Payment partnerships can unlock additional revenue opportunities. 

Integrated payments can help ISVs sell more of their software by providing merchants with the convenience of a seamless solution that combines software and payments in one package.

Partnering with a PSP can get you access to advanced payment features. 

From 3D secure to multi-currency support and text-to-pay capabilities, PSPs can offer merchants advanced payment tools that benefit both themselves and their customers. 

PSPs can also provide operational conveniences like a Card Account Updater, which automatically ensures you have the most up-to-date payment information for your customers on file. Discover how this can benefit your business by checking out our blog: Card Account Updaters: Your Guide for 2025.

How can ISV Partnerships Enhance Business Processes? 

The benefits of ISV partnerships go beyond revenue generation and scalability, as important as those are to consider. A payment partnership with a vetted PSP can also improve the overall financial efficiency of your business through:

  1. Automated Payment Management: PSPs usually have accounting tools that can help ISVs automate important payment workflows like invoicing, recurring billing, and payment reconciliation. 
  2. Better Cash Flow Management: Integrated payment systems can help ISVs improve their payment processing and settlement times. 
  3. Security and Compliance: Payment processing has its own set of regulations that ISVs need to comply with. By partnering with a PSP who knows those rules and requirements, you can avoid mistakes that lead to costly regulatory fines. 

An ISV partnership can also help you save on integration costs when incorporating payment functionality into your products.

What to Look for in a Perfect ISV Payment Partner

ISV partner programs are growing in popularity, but software companies need to know what to look for in an ideal partnership. 

When doing your due diligence on potential ISV partners, be on the lookout for a partner who:

  • Has relevant experience, brand credibility, and is known to be reliable 
  • Offers ongoing support, onboarding guidance, and technical assistance as needed 
  • Offers scalable payment solutions that work reliably whether you have a few customers or millions 
  • Proactively provides revenue-sharing opportunities along with sales and marketing tools to help expand the portfolio.

If you know what you want out of your ISV payment partnership, you’ll be more likely to avoid subpar programs. 

We Take Pride in Our ISV Partnerships 

At MSG Payment Systems, our ISV partnerships and the care we put into them are a source of pride. We offer our ISV partners recurring revenue opportunities, help them streamline their payment operations, and more.We collaborate with your sales, marketing, support, and onboarding teams to ensure a seamless process, resulting in satisfied clients and increased adoption of integrated solutions.

To learn more about what a payment partnership could do for your business, reach out to the MSG Payment Systems team today.

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