Payment services company Worldline has introduced FlexPricing for independent software vendors (ISVs).
The new offering, which Worldline calls the first of its kind, allows ISVs to implement flexible pricing strategies, including charging a percentage on wire transfer transactions, adding custom fees and allowing Worldline to handle their billing duties .
“FlexPricing enables partners to improve their revenue models and optimize the billing experience for their merchants,” the company said in a press release Wednesday (Dec. 18).
With FlexPricing, the release added, software providers can now charge a percentage on wire transfer (EFT/ACH) transactions, “capturing them of a significant revenue opportunity.”
It also allows ISVs to define multiple fee types that fit their business model, such as annual fees or on-time integration fees.
And by letting Worldline handle billing responsibilities for their partners, companies can reduce operational complexity by giving customers a clear and consolidated view for easier invoice management.
“FlexPricing is ideal for software platforms that have integrated payments into their solution. ISVs that facilitate wire transfers or work with membership, payroll and subscription-based businesses are perfect candidates for this position,” the release said, adding that partners using FlexPricing “have the potential to triple their revenue distribution amounts.”
Research from PYMNTS Intelligence and Fiserv’s Carat from earlier this year found that 65% of ISVs and marketplaces without payment capabilities plan to incorporate embedded financial products for payment acceptance this year.
The move would bring them in line with roughly 75% of ISVs/marketplaces with payment capabilities and looking to upgrade their integrated financial products this year, the report found.
“On average, more than 80% of ISVs expect an increase in revenue share from payment acceptance over the next 12 months, indicating a high level of confidence among payment providers,” PYMNTS wrote.
More recently, PYMNTS wrote about the efforts of logistics and wholesale payment facilitators (PayFacs), ISVs and marketplaces to use embedded financing options to increase customer satisfaction, revenue growth and competitiveness.
“More than half of PayFacs and marketplaces in this sector consider embedded financing very important to their innovation plans,” that report said. “Nearly 1 in 3 plan to expand or offer these features in the coming year. While industry ISVs are also embracing innovation, they are doing so at a more moderate pace.”
Top priorities include embedded financial features such as loyalty and rewards; buy now, pay later (BNPL); and business credit, while the integration of digital wallets for accepting payments has also become critical to these companies’ operations.
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