Everything You Need to Know About ISV Integrated Payments

Independent software vendors (ISVs) develop the software that keeps countless modern businesses running. And with the rise of digital transactions, more ISVs are integrating payment capabilities into their business management platforms to give merchants a faster, easier way to manage payments.

ISV integrated payments simplify how businesses accept payments, manage transactions, track revenue, and more. When supported by the right infrastructure, this added capability can help ISVs — and the merchants they serve — deliver more value to their customers.

Key takeaways:

• ISV integrated payments allow merchants to accept and manage transactions directly within the software they already use.
• Integrated payments give ISVs a competitive edge while simplifying operations and delivering a seamless user experience. 
• Choosing the right payment partner is critical to ensure security, compliance, and long-term success in integrated payments.

What are integrated payments? 

Integrated payments are payment capabilities embedded directly in a software platform. This allows users to complete transactions without being redirected to a third-party payment page. 

For example, a sports venue might use integrated payments to offer built-in checkout features so fans can pay for event tickets or merchandise without leaving the app. 

Integrated payments can also support B2B transactions by allowing businesses to send and receive payments, e.g., invoices or recurring payments, directly within the software they already use.

For ISVs, integrated payments enhance the functionality of their software and improve the user experience. While use cases vary across industries, ISVs in financial services can benefit from integrated payment solutions that offer fast merchant onboarding and flexible infrastructure designed to scale with client needs. 

How do ISV integrated payments work?

ISVs use banking APIs to embed payment functionality into their software. These APIs allow the software to securely connect with payment gateways or processors, enabling the transmission of payment data without storing sensitive information directly in the application. Once integrated, merchants can accept card payments, ACH transfers, and other digital payment methods through the software. 

ISVs can also leverage APIs for tasks like transaction tracking and account management to give their merchant clients greater visibility and control over payment activity.

Benefits of ISV integrated payments

Adding payment functionality transforms software platforms into more complete business tools. Below are several ways integrated payments enhance platform functionality and long-term value.

Competitive edge

Integrated payment capabilities can help ISVs stand out in a crowded market. Built-in payments can be a key differentiator during the buying process, particularly for industries like healthcare or retail that demand secure and streamlined payment processes. 

For ISVs targeting specific verticals, integrated payments create a stronger value proposition by aligning with the unique workflows and expectations of businesses in those markets. 

Stronger security

Processing payments within the platform reduces reliance on third-party gateways and limits exposure to external risks. ISVs can also work with partners that offer tokenization and encryption to further protect sensitive data and simplify compliance with payment security standards like PCI DSS.

Client retention

The ability to manage transactions, reporting, and account activity in one platform simplifies merchants’ daily operations. By removing the friction of navigating multiple systems, integrated payments help ISVs build client loyalty and reinforce the platform’s value over time.

Faster adaptability 

ISVs can roll out updates and adjust payment flows within their platform to meet merchants’ needs. This flexibility helps platforms stay competitive as merchant expectations or regulatory demands shift.

Streamlined operations

Integrated payments connect front-end transactions with back-office systems like invoicing, inventory, and reporting, which reduces friction for merchants. In turn, ISVs can help clients eliminate redundant workflows and improve day-to-day efficiency.

Data analytics

Since integrated payment solutions are designed to sync with other business functions like accounting and inventory management, merchants gain a more complete view of customer payment activity. Centralized data enables merchants to track trends, improve forecasting, and make informed business decisions. 

Scalable solutions

Platforms with integrated payments have greater flexibility to scale with client demand while maintaining a consistent user experience. In particular, cloud-based solutions enable ISVs to support growing transaction volumes and introduce new features without major disruptions.

Challenges of implementing ISV integrated payments

While integrated payments can elevate a software platform’s value, implementation brings unique hurdles. ISVs that understand these challenges early are better prepared to build robust and scalable solutions. 

1. Integration complexity

Embedding payment functionality into software platforms often requires connecting external systems and back-end architecture. Without the right development tools, integration can slow time to market. ISVs should look for partners that offer modern APIs, detailed documentation, and ISV-focused support.

2. Security and compliance 

As payment facilitators, ISVs must meet strict data protection standards and comply with evolving regulations. Working with a PCI Level 1 payment provider that offers built-in tokenization, encryption, and payment fraud prevention tools can reduce risk exposure and simplify the compliance process.

3. Managing costs 

New expenses like transaction fees and gateway costs can impact profitability for ISVs if not accounted for in advance. Choosing a provider with flexible pricing structures or revenue-sharing models can help offset costs and support long-term growth.

4. User experience 

A confusing payment experience can be a dealbreaker for users. To reduce merchant churn, it’s essential that ISVs offer the intuitive transaction experience their customers expect. Identifying partners that support a variety of payment methods can help ISVs deliver a polished user experience.

5. International expansion 

Expanding into new regions introduces complexity around local payment preferences, compliance, and currencies. ISVs that plan to work internationally need payment providers that offer multicurrency capabilities and infrastructure designed to support global growth. 

Best practices for ISVs in payment integration

Payment integration is both a technical task and a strategic move. If you’re an ISV looking to make payments a long-term advantage, these best practices are a good place to start.

Choosing the right payment partner

Choose a payment partner that offers robust APIs and understands the demands of a software-first business. The best providers act as collaborators, offering technical support, scalability, and monetization opportunities designed specifically for ISVs. 

Prioritizing security and compliance

Your merchants need confidence that customer payment data is protected at all times. To reduce risk and avoid compliance gaps, work with a provider that embeds security into its technology. Support for standards like PCI DSS, HIPAA, and other industry-specific requirements can simplify oversight and ease the burden of managing evolving requirements.

Focusing on user experience 

Your software directly influences whether your merchants’ customers have a positive checkout experience. To deliver a responsive user interface without heavy front-end development, choose providers that offer low-code integration options and broad payment method support. 

Start your integrated payments journey with Priority 

Adding integrated payments to your software is a strategic way to deepen merchant relationships and create new revenue opportunities. The key is finding a partner that makes integration simple and sustainable.

Priority equips ISVs with developer-first APIs and hands-on support from a team that understands the complexity of software development. With the added capability of our MX™ Merchant suite, you can give clients a centralized platform to accept payments, manage reporting, and streamline their day-to-day operations. 
Get in touch with Priority to learn how integrated payments can elevate your platform.