To paraphrase a saying that is attributed to Charles Darwin, it is the most responsive one to change that ultimately survive.
And from the 19th-century Galapagos to the 21st-century Global Payments Landscape, those words continue to sound.
With the demand for seamless payment solutions that grow at an unprecedented pace, driven by the accelerating shift to digital payments and reinforced by changing consumer and business behavior, independent software suppliers (ISVs) are in a high-quality balancing stable landscape.
“Software companies are under much pressure from their investors to find new income flows and to find that growth, but still meet the needs of their customers and keep that front and center,” Adam Gray, Chief Transformation Officer at Stax, told Stax, to Pymnts, add that ISVs have investigated embedded payments as a feasible solution to generate new income and at the same time improve the customer experience.
But the inclusion of payments is not just a technical integration. It includes managing complex relationships with several stakeholders, including banks, fintechs and regulatory authorities. This complexity requires ISVs to maintain a delicate balance between offering flexibility and maintaining control over their payment solutions.
It is time for ISVs to reconsider their approach to payments
When it comes to payment integration, ISV’s traditionally leaned on the Payfac model (Payfac) model. Gray, however, noted that this approach may not always match the specialized needs of certain industries.
“Some of the complexities associated with trust and operational account … If you go full payfac or just embedded payments, it may not meet the needs of your customers,” he said.
Stimulating business growth while maintaining customer satisfaction also requires that ISVs are accepting a strategic mindset for scaling. Many find success by building modular solutions that can adapt to the different needs of different customer segments. This flexibility not only improves customer satisfaction, but also offers opportunities for cross-selling and upselling.
Gray argues for a more tailor -made approach, and emphasizes the importance of choosing payment solutions that match specific vertical requirements.
“Finding a payment provider that can offer the niches of software services you need, it is really crucial in today’s world,” he said. “We see many verticalizations where ISVs specialize … Payments are an important part of that.”
Collaboration between ISVs and payment providers is crucial for delivering value to small and medium -sized companies (SMEs). Gray believes that understanding the unique needs of every trader is the key to success.
“The key is not to only tell them how to make payments, but to understand what their needs are,” he said.
A robust partnership can offer ISVs the expertise of compliance, security and fraud protection that is needed to thrive.
“Payments are a complicated space with a lot of compliance … This is where finding a partner in payments that can bring that expertise and get next to you while you concentrate on what your customer and industry need,” said Gray.
A high-touch approach to embrace a high-touch approach
As the market requirements evolve, ISVs who want to win competitive positioning can consider using flexible strategies in every phase of the payment trip. Against this operational background, Gray emphasized the importance of combining technological innovation with human expertise.
“You can have the best technology in the world, but if you don’t have the people to answer your questions, to help design and encourage that expertise, then you’re not going to get there,” he said, the emphasized the emphasized the emphasized the Need a high-tech, high-touch approach.
Gray underlined the importance of meeting customers where they are, both in terms of technology and price models. For field services, for example, mobile payment technology can significantly improve the customer experience and operational efficiency.
He pointed to the increasing popularity of omnichannel solutions and digital portfolios as examples of how the expectations of the consumer shift.
“There was an HST report that 62% of the millennials book all their travels via their phone … There is a question from all consumers for flexible, digital solutions that simply reproduce to all industries while they go to the management roles for B2B , “said Gray.
An innovation area that excites gray is an exchange analysis. He described it as one of the “Easter eggs” of the payment industry – hidden opportunities that can optimize income and reduce the costs for ISVs and their traders.
“If you delay and find these hidden gems, that is where innovation takes place,” said Gray.
He said that Stax invests heavily in his own technological stack to offer end-to-end solutions that can adapt to the evolving needs of the industry. By choosing the right partners, embracing a flexible approach and using both technology and human expertise, ISVs can not only meet different trading needs, but also unlock new roads for growth.
As Gray put it, the future of payments innovation lies in finding those “hidden gems” and to change them to tangible value for companies and consumers.
