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Category: Embedded Finance & ISVs

Guidance for software vendors and platforms integrating payments, billing, or financial services directly into their applications.

  • Building Embedded Payments: What ISV and SaaS Dev Teams Need to Know

    Building Embedded Payments: What ISV and SaaS Dev Teams Need to Know

    Reading Time: 4 minutes

    What Are Embedded Payments?

    Embedded payments are payment processing capabilities built directly into a software platform so that customers can complete transactions without leaving the application or being redirected to a third-party payment portal. For an independent software vendor (ISV) or a SaaS company this means your product not only manages core business operations but also handles billing, payment submission, tokenization, settlement or workflows, all within the same user interface.

    When done well the payment experience feels natural and seamless. Your user schedules a service, uploads a file or selects a subscription tier, and the payment is handled behind the scenes in the same flow.

    Embedded vs integrated vs traditional

    It helps development teams to draw three clear categories of payment experience:

    Traditional payments: The user is redirected out of the software environment or uses a separate payment application to complete payment. The payment provider may not be tightly integrated with your workflow.

    Integrated payments: Your software connects to a payment system via API or plugin. Payment functions appear inside your product but often via a hosted page, redirect or a separate UI module. The user may still feel a third-party element.

    Embedded payments: The payment flow is built into your product under your brand, without redirect, with full control of UX, user data, onboarding, tokenization and settlement, often designed for the exact vertical or workflow your platform serves.

    If the user never leaves your product and you control the payment interaction as part of your workflow, you are doing embedded payments.

    Why Embedded Payments Matter for ISVs

    For ISVs and SaaS companies building platforms for other businesses, embedded payments offer meaningful strategic advantages.

    Customer retention

    When payments are integrated into your product the user remains in your environment, reducing friction at checkout or renewal. That seamless experience improves the likelihood of renewal and reduces churn. Platforms that embed payments tend to keep users engaged because there is one less point of vendor handoff.

    Additional revenue streams

    By embedding payments you open up monetization beyond your core subscription or license fee. Your platform can earn a share of transaction fees, offer premium payment-related services such as fraud monitoring, analytics and payouts, or move into a payments facilitation model. Research shows that non-financial software platforms embedding payments can meaningfully shift their revenue mix.

    Better UX control

    When the payment experience is part of your software you control branding, workflow, styling, user journey, error handling and reporting. That leads to higher satisfaction and fewer support issues. You also avoid the dilution of brand when a third-party redirect or external page is used.

    Developer Considerations

    From a technical and product standpoint, embedding payments requires specific considerations beyond simply hooking up a gateway.

    APIs and SDKs

    A proper embedded payments setup demands developer-friendly APIs such as RESTful endpoints, webhooks and SDKs for mobile or native apps if applicable. These allow you to integrate capture of payment methods like credit cards, ACH and digital wallets. They also support tokenization, subscription lifecycle, refunds and payouts. Your development team must evaluate the SDKs, sandbox environment, documentation, versioning and how the partner supports your stack such as JavaScript or backend languages.

    Webhooks and data latency

    Payment systems operate asynchronously. Success or failure of transactions, chargebacks, refunds, declines and disputed transactions often trigger events via webhooks. Your platform must subscribe, handle retries, apply idempotency, update UI, reconcile records, alert users and reflect state in your system. Poor webhook handling leads to stale data, confusion, mismatches and support issues.

    Multi-currency support

    If your SaaS product serves global markets you will need support for multiple currencies, local currencies, settlement currency, exchange rates, fees and regulatory or cross-border compliance. Some embedded payment providers offer multiple currency acceptance and global settlement. Make sure you plan for user experience including display currency and rounding as well as settlement such as the currency you receive and any FX risks.

    Risk, Compliance and Liability

    Embedding payments pulls in financial operations which means you must still manage risk, compliance, underwriting and payment data security even if you outsource much of it.

    Who owns KYC and fraud risk?

    When you integrate embedded payments you must decide responsibility lines. Are you the merchant of record? Are you underwriting sub-merchants or using a sponsor or acquirer? If you become a payment facilitator, you assume underwriting, KYC or AML and merchant monitoring. If you partner with a PayFac-as-a-Service you offload much of the compliance burden but still need visibility and governance. Clarify early who owns merchant onboarding, underwriting, risk monitoring, chargebacks, reserves and termination.

    Tokenization and PCI scope

    Since you are handling payment flows inside your product you must pay attention to PCI-DSS scope. Use tokenization so you do not store raw cardholder data. Use hosted fields, token vaults or gateways that remove card data from your scope. Reducing your PCI footprint is an important risk mitigation and compliance step.

    Integration Models

    Your path to embedded payments will vary based on how much control you want and how much responsibility you are willing to take.

    Build vs partner

    You can attempt to build the payment infrastructure yourself, including merchant accounts, acquiring relationships, underwriting and settlement. That gives full control but comes with significant operational burden and regulatory risk. Alternatively you can partner with a payments provider or PayFac-as-a-Service that handles much of the payments stack while you focus on product. This is the most common path for ISVs.

    Hosted vs full stack vs hybrid

    Hosted payments: A third-party payment page or widget is embedded inside your application. The redirect or the backend is managed by the provider. It requires less effort but offers less control.

    Full stack embedded: Your product owns the UI, workflow and tokenization. You manage the experience while the payment partner runs the processing behind the scenes. This offers maximum control.

    Hybrid model: Some parts are embedded and others are hosted. For example, onboarding might be hosted while recurring billing is embedded. This approach balances speed and customization.

    Choose the model that fits your product roadmap, regulatory goals, vertical needs and monetization strategy.

    What to Look for in a Payments Partner

    When selecting a payments partner for embedded payments there are key criteria to evaluate:

    • Developer-friendly APIs, SDKs, documentation and sandbox access
    • Support for your verticals such as medical spas, transportation, automotive, jewelers, gyms and health or wellness
    • Multi-currency and international payment support
    • Tokenization, encryption and PCI-DSS compliance
    • Clarity on responsibilities including underwriting, KYC, chargebacks and reserves
    • Transparent monetization options including revenue share and flexible rate structures
    • Ability to scale across new markets, payment types and user volumes
    • Brandable experience to maintain consistent UX and design
    • Technical support for webhook management, event handling and implementation guidance

    Embedded payments for ISVs are not just a convenience. They are a competitive advantage. If you are building software for vertical businesses, embedding payments gives you a better product experience, stronger customer retention and new monetization opportunities. By choosing the right architecture and payment partner, your team can build a better platform without losing focus on your core product.

  • Top 3 Reasons ISVs Fail and How to Avoid Them

    Top 3 Reasons ISVs Fail and How to Avoid Them

    Reading Time: 5 minutes

    Running a small or mid‑sized business is challenging enough without software that complicates your budgeting, takes too long to deploy, or leaves you without help when things go wrong. For independent software vendors (ISVs), three recurring problem areas include pricing, installation, and support. These are the major reasons customers abandon solutions. The good news is: addressing these issues is entirely achievable. 

    In short: SMBs expect transparent pricing, fast implementation, and dependable support. If you can deliver on those, you’ll not only win customers but keep them. This article examines the most common mistakes ISVs make in these three areas and offers practical improvements you can implement today. 

    Reason 1: Pricing Problems and How to Fix Them 

    Pricing missteps often undermine an ISV’s ability to connect with small and medium‑sized businesses, sometimes before a demo is completed. Confusing pricing or hidden costs drive potential clients away. 

    Common pricing mistakes 

    • Hiding the actual cost: A low headline price may attract attention—but if setup fees, integration charges, or processing costs appear later, SMB prospects often shift to a competitor. 
    • Rigid pricing tiers: When only fixed packages exist, some SMBs feel their needs don’t fit and walk away—flexibility matters. 
    • Ignoring ongoing costs: If your pricing model only covers the subscription or license fee but overlooks hosting, processing, or marketplace fees, your profitability and customer trust can suffer over time. 
    • Over‑complex pricing pages: If an SMB owner cannot quickly ascertain what they’ll pay and what they’re getting, you increase the risk of abandonment. 

    What SMBs want from pricing 

    SMBs value pricing that is transparent and predictable—so they can budget confidently. They want to know the full cost upfront, including any add‑ons or optional features. They appreciate flexibility—monthly vs annual billing options, varying transaction volumes, or usage‑based costs. Clear side‑by‑side feature comparisons help business owners evaluate value and feel confident in their decision. 

    Better pricing strategies 

    Consider usage‑aligned models—dual pricing or volume‑based pricing that separate a base fee from transaction costs so SMBs only pay for what they use. Offer a modular structure: a core package covering essentials (e.g., software license + processing) plus optional add‑ons (e.g., advanced reporting, integrations, recurring billing).  

    Adding a cost‑calculator tool on your website lets prospects estimate monthly or annual spend based on their transaction volume, building trust through transparency. Simplifying your pricing and offering clear, flexible options strengthens trust and increases adoption. 

    Reason 2: Installation and Setup Problems 

    A cumbersome installation or onboarding process is another primary reason SMBs abandon software solutions before fully adopting them. 

    Installation pitfalls 

    • Lengthy deployment: When a vendor promises “quick setup” but weeks pass until the software is operational, SMBs get frustrated—especially if payments or other business-critical functions are involved. 
    • System compatibility issues: Many SMBs run a mix of older and newer systems and often lack a whole IT team. If your software demands a pristine or very modern stack, it becomes a barrier. 
    • High technical burden: If setup requires advanced configuration, API work, database changes, or hiring outside consultants, SMBs often walk away rather than get bogged down. 
    • Poor documentation: Guides that assume high technical skill—or that are stale—leave SMBs stuck. When they cannot figure out basic setup steps, they move on. 

    What SMBs need for installation 

    They expect software to be operational quickly—ideally within 24 to 48 hours of purchase or sign‑up. They want minimal disruption to their workflow, compatibility with existing systems and hardware, and cloud‑based options that avoid on‑site servers or complex installations.  

    Clear, plain‑language setup guides (with screenshots or video tutorials) matter. Immediate access to knowledgeable support during setup is essential. Importantly, SMBs must feel confident that implementation will not interrupt their operations at a critical time. 

    Solutions for smoother installation 

    • Provide same‑day or one‑day activation through automated onboarding and pre‑configured templates or wizards. 
    • Adopt a cloud‑first approach: web‑based access, browser-friendly, mobile-friendly—reducing hardware or local‑install burdens. 
    • Offer pre‑built integrations with popular SMB tools (accounting systems, payment processors, e‑commerce platforms) so the customer can plug in and go. 
    • Include clear checklists that break setup into short steps (10‑15 minutes each), with success indicators so the SMB can see their progress. 
    • Offer remote setup assistance (screen sharing and guided walk-throughs). For high‑volume or high‑value clients, consider a dedicated onboarding service to handle the initial configuration on their behalf. 

    Reason 3: Poor Customer Support and How to Fix It 

    Even if pricing and installation are solid, inadequate support can undermine every other effort. SMBs expect dependable assistance when issues arise. Many ISVs underestimate the impact of support quality on customer satisfaction and retention. 

    How poor support hurts business 

    • Slow response times: Waiting 24‑48 hours for a reply during peak business hours is unacceptable for many SMBs, especially if their revenue depends on the software. 
    • Support agents lacking product expertise: If customers must repeatedly explain their issue or receive generic answers, frustration builds quickly. 
    • Technical‑oriented documentation that ignores non‑IT users: If guides are aimed at developers rather than business users, support costs increase and satisfaction drops. 
    • Increased operational costs: High churn due to poor support drives higher acquisition costs and more time spent on reactive support. 

    What SMBs expect from support 

    • Quick acknowledgement: Even a rapid “we’ve received your request and are working on it” builds confidence. 
    • Accessible phone support: While email and chat are valid options, speaking with a specialist matters for urgent issues. Availability during regular business hours (e.g., 8 a.m.–6 p.m.) is essential. 
    • Industry‑specific knowledge: Support staff need to understand the business context (e.g., differences in payment processing for retail vs service industries). 
    • Practical self‑service options: A searchable knowledge base with clear step‑by‑step instructions, screenshots, or videos, designed for non‑technical business users. 
    • Proactive communication: Informing customers in advance about maintenance, scheduled upgrades, or known issues fosters trust. 

    Improving your support systems 

    • Invest in training your agents in real‑world SMB use cases so they can provide practical, relevant assistance. 
    • Define clear escalation paths — tier‑1 and tier‑2 support — with documented processes so issues don’t get stuck. 
    • Use monitoring tools to detect issues proactively and notify affected customers before they discover them. 
    • Keep documentation current and tailored to business users (not just developers). 
    • For major accounts, assign a dedicated account manager who understands the client’s setup, goals, and history. 
    • Establish a feedback loop: Regularly collect customer support data and feed common issues back into your product roadmap so the software improves based on real user problems. 

    How to Avoid ISV Failure: 3 Key Steps 

    Your success as an ISV often boils down to these three core areas: pricing, installation, and support. 

    1. Use transparent, adaptive pricing. 

    Transparency builds trust. SMBs want to know what they’re committing to financially. That means no hidden fees, clear rates, and flexible tiers that match businesses of different sizes and transaction volumes. For example, a small business processing $15,000 per month may have very different pricing expectations than one processing $150,000. Offering usage‑based pricing or volume discounts helps meet that diversity. 

    2. Make installation quick and straightforward. 

    Many SMBs lack dedicated IT teams — they need solutions that are ready to go quickly. Pre‑configuration, cloud delivery, drag‑and‑drop integrations, and step‑by‑step onboarding guides minimize friction and help your software become part of the customer’s operations fast. 

    3. Provide reliable, business‑centric support. 

    When software underpins someone’s business, downtime or frustration hits hard. A well‑documented self‑service system, combined with responsive human support, helps prevent minor issues from turning into customer churn. Communicate proactively, train your support teams on business-impact topics, and track root causes to keep improving. 

    FAQs 

    What can ISVs do to create a pricing model that works for SMBs? 

    ISVs should focus on simplicity and alignment with value. Consider a value‑based pricing model (tying cost to outcomes), consumption‑based pricing (pay for what you use), and flexible billing (monthly vs. annual). Providing free trials or pilot options helps build trust by letting SMBs evaluate fit before committing. 

    What are the best strategies for ISVs to make software installation easier and more efficient? 

    Offer both guided onboarding and self‑service options. Use wizards and templates to minimize configuration time. Provide clear, plain-language step-by-step instructions (with visuals) and keep support available during the initial deployment. For key clients, offer comprehensive onboarding services, handling the setup. 

    What can ISVs do to improve customer support and boost satisfaction? 

    Focus on agent training grounded in your customers’ business context, not just technical features. Use tiered support models and automate routine inquiries so human effort goes where it’s needed most. Maintain a knowledge base designed for business users. Keep customers informed about system updates and provide a dedicated contact for strategic customers. Collect feedback and integrate it into your roadmap so your software evolves with your users’ needs. 

  • What Are Integrated Payments? A Simple Guide for Software Platforms & ISVs 

    What Are Integrated Payments? A Simple Guide for Software Platforms & ISVs 

    Reading Time: 6 minutes

    Integrated payments allow you to process transactions right inside your software — no switching between systems, no clunky external payment pages. If you run a software platform or are an ISV (Independent Software Vendor), this approach can save time, reduce errors, and simplify how your business runs. When you embed payment processing directly into your platform, you also keep users engaged and unlock new revenue opportunities. 

    This guide explains how integrated payments work, why they’re a game‑changer for U.S. businesses, and how to get started. Whether you’re dealing with invoices, subscriptions, or mobile payments, integrated systems can bring everything under one secure roof. Ready to see how this could apply to your business? Let’s dive in. 

    How Integrated Payments Work 

    Technical Foundation 

    Integrated payments operate through three core technologies that enable payment processing within your software platform: 

    • APIs (Application Programming Interfaces): These provide the connection between your platform and payment processors. They enable real‑time data exchange, so functions like payment authorization and transaction updates can happen without forcing users to leave your interface. 
    • SDKs (Software Development Kits): These libraries give developers pre‑built code to implement payment features — such as tokenization of card data, recurring billing, and custom payment forms. They speed up development and help you align with security standards. 
    • Payment Gateways: Gateways act as secure intermediaries, routing transactions between your system, banks, and card networks. They handle much of the complexity behind the scenes and ensure transactions meet rigorous security and compliance requirements. 

    When combined, these technologies create a smooth payment experience embedded inside your platform. 

    Payment Workflow 

    Here’s how the flow typically works: 

    • A customer initiates a payment within your platform. You collect their payment information through embedded forms. 
    • Sensitive data (such as card numbers) is tokenized — replaced with a secure token that can be stored or reused safely. 
    • The payment gateway processes the authorization request in real time. Your platform can display progress, confirmation messages, or errors — without redirecting the customer. 
    • Transaction data flows directly into your system: customer records are updated, invoices are generated, and dashboards are refreshed. All of this automation makes follow‑on actions (emails, access changes, recurring billing) possible without manual work. 

    With this architecture in place, you enable a consistent, efficient workflow that keeps users inside your software experience. 

    U.S. Payment Methods 

    Integrated payment systems support the full range of payment preferences shared in the U.S.: 

    • Credit and Debit Cards: Major networks (Visa, Mastercard, American Express, Discover) for both in‑person and online transactions (EMV chip, magnetic stripe). 
    • ACH (Automated Clearing House): Ideal for recurring billing or larger B2B transactions — lower fees compared to cards. 
    • Contactless/Digital Wallets: Apple Pay, Google Pay, Samsung Pay, and the like use tokenisation and support mobile‑optimized flows. 

    The real benefit of supporting multiple methods through an integrated system is the unified reporting it enables. Whether someone pays by card, ACH, or wallet, you see it all in one dashboard — simplifying reconciliation and financial management. 

    Benefits for Software Platforms and ISVs 

    Better User Experience 

    One of the most significant advantages: users stay on your platform during payments rather than being redirected elsewhere. No context switching means less friction and greater chances of completed transactions. 

    Real‑time notifications (successful payment, failure, etc.) build trust and reduce confusion. 

    If you offer subscriptions, integrated systems let customers update payment methods, view billing history, and self‑serve — all in one place. That boosts satisfaction and cuts support volume. 

    Mobile‑first design really matters: users on phones expect seamless flows and support for wallet payments, which integrated payments can deliver. 

    Improved Efficiency 

    Automation is a huge win. If payments sync directly into your accounting or CRM systems, you avoid manual entry and reduce errors. 

    Support teams benefit too: having payment data inside the platform means quick access to transaction history, refunds, or billing issues — fewer context switches for them, faster resolution for users. 

    If a payment fails, integrated systems can trigger retries, send alerts, or pause service — proactive moves that help recover revenue and reduce churn. 

    For platforms with recurring billing, features such as proration, plan changes, and dunning (handling failed payments) work best when baked into a single system. 

    New Revenue Streams 

    Embedded payments aren’t just cost‑savers — they can also become profit centers. 

    You can take a share of each processed transaction. As your volume grows, so does your revenue from payments. 

    You can offer premium services — advanced fraud protection, international payments, and enhanced checkout flows—these have higher margins. 

    Cash‑flow improvements matter too. When you control the payment flow, you may optimize settlement timing or earn interest on float balances (especially if volumes are high). 

    And there’s data. Transaction‑level insights reveal customer behavior, purchase trends, and market dynamics. With proper privacy safeguards, you can use that data to refine your offering — or, in some cases, monetize insights to partners. 

    For subscription‑based platforms, integrated payments also support revenue‑sharing models: not just a license fee but taking a slice of recurring income — aligning your success with your users. 

    When you combine improved experience, operational efficiency, and new revenue streams, integrated payments become a strategic advantage for software platforms and ISVs. 

    How to Implement Integrated Payments 

    Assess Your Business Needs 

    Start by evaluating how you currently handle payments. Map your customer journey and identify friction points. 

    Consider scale: a platform processing under 1,000 transactions per month has very different requirements than one processing 50,000+. High‑volume systems demand robust error‑handling and scalable infrastructure. 

    Look at your industry and customer types: 

    • B2B platforms may prioritize ACH and invoicing tools. 
    • Consumer‑facing platforms need dynamically varied payment methods. 
    • Healthcare or regulated sectors may require specialized payment types (e.g., HSAs, FSAs) and strict compliance. 
    • Define your reporting and analytics needs up front — make sure your payment and BI systems align. 
    • Once you’ve clarified your needs, move on to selecting the right technology partner. 

    Choose a Payment Technology Partner 

    Your partner determines how smoothly integration goes — and how well your system scales. Look for APIs designed for seamless integration and modular features so you can implement only what you need. 

    Key evaluation criteria: 

    • High‑quality APIs with clear documentation and sandbox environments. 
    • SDKs, webhook support, backward compatibility, so updates don’t break you. 
    • Certifications: PCI, SOC 2, state‑level data privacy laws. 
    • Reliable infrastructure: minimal downtime is essential when handling payments at scale. 
    • Strong support: dedicated integration assistance, good documentation, responsive technical help. 

    Choosing well means fewer surprises during rollout and fewer delays messing with your go‑to‑market. 

    Testing and Deployment 

    Testing is your safety net. Use a sandbox environment that mirrors production. Cover standard flows and edge cases — declined cards, ACH failures, network outages. 

    Perform load testing: simulate peak volumes (3‑5× expected) to uncover bottlenecks, such as slow API calls or rate limits. 

    Set up monitoring and alerts: failed transactions, error spikes, and performance drops all need to trigger action. 

    Deploy in phases, not all at once. Start with a limited customer group, a subset of transactions. Gradually expand as you gain confidence. This contains risk and gives you a chance to fine‑tune with real usage. 

    Document everything: API configs, error‑handling workflows, support procedures. Good documentation pays off in the long term when you maintain or scale. 

    Industry Use Cases 

    Here are three verticals where integrated payments make a real difference: 

    Healthcare 

    In healthcare, payment systems must support HSA/FSA plans, integrate with EHRs (electronic health records), and meet strict security requirements. Patients expect to pay through their portal without bouncing to another site. Integrated systems handle all that. 

    For example: a treatment bill flows from the practice management system, the portal presents payment options (card, ACH), the payment is tokenized and processed, and the patient’s account and records are updated in real‑time. The practice can focus on care rather than chasing billing. 

    Automotive 

    Auto‑repair shops and dealerships face complex workflows: additional parts approved mid‑service, onsite payments, and inventory updates. A mobile payment terminal integrated with the service‑management software adds significant value. 

    When a repair estimate is approved, the technician triggers payment on-site or via a link; inventory and work‑order updates are instantly applied, and customer history logs unfold. No manual re‑entry, no reconciliation chaos. 

    Death‑Care / Funeral Homes 

    Funeral homes have unique payment needs: families often split bills, accept payments via secure links, offer recurring pre‑need billing, and require transparent pricing. Integrated payments support text‑to‑pay, split invoices, recurring pre‑need plans, and next‑day funding. 

    These features let funeral homes reduce friction at a sensitive time, while keeping their back‑office running smoothly and respecting customer care. 

    Final Word

    Integrated payments are reshaping how software platforms and ISVs handle transactions — bringing smoother user experiences, fewer manual tasks, and new revenue opportunities. By embedding payments into your platform, you unify workflows, bolster efficiency, and build a stronger foundation for your business. 

    To get started: review your current flow, identify pain points (e.g., system switching or manual entry), evaluate potential partners with strong APIs and a commitment to compliance, and design an incremental rollout plan. The payoff? Satisfied customers, cleaner workflows, and a platform that’s built for today — and ready for tomorrow. 

    As the payments world evolves—with new methods and shifting customer expectations—embedding payments now gives your platform a head‑start. Treat your payment solution as part of the product, not as a bolt‑on. Do it right, and it becomes a growth driver. 

    FAQs 

    What are the main advantages of integrated payments for software platforms and ISVs? 

    • A smoother user experience: Payment processing happens inside your platform, no redirecting your users or juggling external pages. 
    • Simplified operations: Automation around collections, reconciliation, and billing reduces manual work and errors, improving cash flow and reporting. 
    • Additional revenue streams: ISVs can earn through transaction share, premium payment features, or value‑added services. 
    • By embedding payments, your platform becomes more attractive, more efficient, and more defensible in a crowded market. 

    How can businesses choose the best payment technology partner for integrated payments? 

    Look for a partner that offers: 

    • Flexible integration (APIs, SDKs). 
    • Support for multiple payment methods (cards, ACH, digital wallets). 
    • Strong security and fraud prevention (tokenisation, encryption). 
    • Multi‑currency / global payment support if you serve beyond the U.S. 
    • Choosing wisely means fewer headaches, smoother integration, and a better user experience. 

    How can integrated payments improve efficiency in specific industries? 

    Because each industry has unique needs, integrated payments help by: 

    • Automating workflows (e.g., connecting payment, inventory, and customer data in retail). 
    • Reducing administrative complexity (e.g., billing & EHR integration in healthcare). 
    • Streamlining checkout and customer interaction (e.g., service shops, hospitality). 
    • By tailoring payment flows to the industry, platforms save time, cut costs, and improve customer satisfaction. 
  • How to Monetize Payments Within Your Software Platform

    How to Monetize Payments Within Your Software Platform

    Reading Time: 4 minutes

    Most software companies rely heavily on subscription revenue. It’s predictable and straightforward, but it has limitations – there’s only so much you can charge before customers push back. There’s another revenue model worth considering: payment monetization. Done well, this becomes a genuine revenue stream that scales naturally with your customers’ success. 

    What Payment Monetization Actually Means

    Simply put, payment monetization means earning revenue from the payments that customers are processing through your platform. There are several ways to structure this.

    Interchange sharing

    Card networks charge an interchange fee on every transaction. When your platform facilitates payments, you can negotiate to share in this interchange revenue with your payment processor. Instead of passing payment processing through to your users at cost, you earn a small percentage of every transaction.

    Value-added services

    Beyond basic processing, you can monetize by offering premium payment features like faster payouts, advanced fraud protection, international payments, or financing options. Customers are willing to pay extra because these features solve real problems, like improving cash flow or reducing chargebacks, that basic processing doesn’t address.

    White-label and embedded billing

    Rather than sending users to a third-party processor, embedding payments directly into your software creates a seamless experience. White-labeled payment solutions let you own the customer relationship and earn more revenue from each transaction.

    Revenue Models for Monetized Payments

    The right model for monetized payments depends on your customer base, transaction patterns, and competitive positioning. Here are some options.

    Flat-rate vs. interchange-plus

    Flat-rate pricing charges customers a single percentage on all transactions, like 2.9% + $0.30. This is simple and transparent, ideal for small businesses or platforms just starting with payment monetization.

    Interchange-plus pricing charges customers the actual interchange cost plus your markup. High-volume customers prefer interchange-plus pricing because they can audit the pricing and negotiate better terms. 

    Subscription pricing

    Some platforms charge a monthly fee for access to embedded payment features. This works when payments are packaged as part of a premium tier or when you’re offering significant value beyond basic processing. For example, a childcare management platform might charge $75/month for payment features that include automated weekly tuition billing or split payments between parents.

    Usage-based fees

    Usage-based monetization charges customers based on transaction volume or specific features accessed. This model aligns costs directly with value received and is easier to justify since customers only pay when they use the service.

    Key Technical Considerations

    Monetizing payments requires solid technical infrastructure. Below are some considerations for building your payment solution.

    API access and documentation

    Your payment API needs to be developer-friendly, well-documented, and reliable. Invest in comprehensive documentation, sandbox environments, and example code to make integration easier. The smoother your integration experience, the faster platforms will adopt your payment solution – and the more revenue you’ll generate.

    Reporting and analytics

    Customers expect detailed reporting on transaction volumes, processing fees, settlement timelines, and revenue breakdowns. Without it, they can’t reconcile their books, understand their true costs, identify trends or problems, or trust that you’re charging them correctly. Having robust reporting tools in place helps build customer trust and drive retention.

    Settlement and payout timelines

    How quickly can your customers access their funds? Settlement timing impacts cash flow and customer satisfaction. Work with your payment partner to offer competitive payout schedules and be transparent about when funds will be available.

    Risk and Compliance Responsibilities

    When you monetize payments, you take on responsibilities around risk management and regulatory compliance. There are really two main areas you need to address.

    KYC & onboarding

    Know Your Customer (KYC) requirements mean you need to verify merchant identities on your platform. This includes collecting business information and screening for fraud. Choose a payment partner that handles much of this while keeping the experience smooth for your customers.

    PCI compliance and tokenization

    Payment Card Industry (PCI) compliance is non-negotiable when handling card data. By using tokenization and working with a PCI-compliant payment processor, you can reduce your compliance burden while keeping customer data secure.

    Real-World Examples of ISV Monetization

    Consider a property management software provider. A platform for landlords automates rent collection, late fees, and security deposits. They charge 2% of every rent payment processed. A landlord with 50 units collecting $100,000/month generates $2,000 in monthly payment revenue for the platform.

    Or look at appointment booking software for nail salons. A salon management platform processes payments for services and product sales. They earn $0.50 per transaction plus 0.3% of volume. With hundreds of salons processing thousands of appointments weekly, this adds up to significant recurring revenue.

    How to Get Started

    Start by analyzing your current payment flows. Where are your customers processing payments today? What friction points exist? How much volume flows through your platform? Then, build a business case. Model out potential revenue based on transaction volume, pricing structure, and take rates.

    Finally, choose a payment partner that aligns with your vision. Here are a few important questions to ask when evaluating payment processors.

    • Do you offer revenue sharing or interchange-plus pricing?
    • What APIs and developer tools do you provide?
    • How do you handle merchant onboarding, KYC, and compliance?
    • What reporting tools are available?
    • What is your settlement timeline?
    • Do you provide sandbox environments for testing?

    With the right strategy and payment partner, your platform can turn payments into a fundamental part of your business model. Ready to explore payment monetization for your platform? Aurora Payments specializes in helping ISVs and SaaS companies embed payments and build new revenue streams. Contact us today.

  • Understanding Embedded Finance: Beyond Payments

    Understanding Embedded Finance: Beyond Payments

    Reading Time: 6 minutes

    Software platforms are transforming how people pay, borrow, and manage money. In the past, customers relied on separate banks, lenders, or insurers to complete financial tasks. Today, more of these services are being built directly into the digital products people already use. This shift is called embedded finance, and it’s becoming one of the most impactful trends in financial technology.

    For SaaS executives, product leaders, and business owners, embedded finance offers a new way to increase the value of their vertical-specific platform, build revenue, and strengthen and deepen customer relationships. And while embedded payments are the most common starting point, the model extends much further. With the right partner, platforms can add tools like recurring billing, white-label solutions, or even banking functions like lines of credit, deposit accounts and disbursement tools without becoming a bank themselves.

    Aurora Payments currently supports vertical-specific software companies and service platforms with embedded payments infrastructure designed to launch quickly and scale over time. Aurora is also developing the next generation of embedded finance tools to further strengthen and expand the services offered by our ISV Partners to the merchants they serve.

    What is Embedded Finance?

    Embedded finance means integrating financial services like payments, lending, insurance, or banking into software that was not originally designed for finance. For example, a pet care scheduling platform that lets users book appointments and also pay within the app is offering embedded payments. An auto repair shop system that lets customers finance their bill through the same platform is using embedded lending. The financial tools are no longer separate, they are built into the core product workflow and offer a more seamless and intuitive user experience. 

    The biggest benefit of this approach is convenience. Users no longer have to bounce between platforms or log into different systems to complete tasks. The platform is empowered to build and deliver a more relevant and curated experience that keeps the user engaged and captures more value from each transaction.

    Beyond payments: lending, insurance, banking as a service

    Embedded finance is not limited to payment processing. It includes lending options, such as buy-now-pay-later or working capital financing. It includes insurance offerings that can be added at the point of sale. It can also include banking services, such as automated account creation, custom deposit accounts for faster deposit availability, or debit card issuance for fund disbursement with full spend controls, all designed to work seamlessly within the SAAS company’s native application. 

    Aurora has built its ARISE platform, a modern technology platform with easy to use integration components, as the foundation for many of these services. Today we offer businesses the ability to accept ACH, credit cards, and digital wallets within their software, and we give platforms the tools they need to start participating in embedded finance. As our Partner’s  strategy expands, the services offered through the ARISE platform will expand as well  – ensuring that our Partners can participate in, and thrive within this new payments frontier and scale with confidence over time. 

    Key Benefits of Embedded Finance

    Software companies are embracing embedded finance not just because it is more convenient for users, but because it helps the business itself. Here are three core benefits to remember that make embedded finance a smart strategy.

    Customer retention and platform stickiness

    When your users can complete more tasks inside your software, they are more likely to stay. Payments are often the first step. Instead of directing users to an outside payment page, embedded payments allow them to complete a transaction inside your application. That convenience builds loyalty. It also allows you to offer services like recurring billing, stored payment methods, and digital invoicing that keep customers connected to your platform over time. You worked hard to earn your customers, Aurora makes it easier to keep them.

    Aurora’s ARISE platform allows software providers to embed branded payment flows that support these use cases. Once payments are integrated, software companies can build additional features around that foundation, including revenue reporting, loyalty programs, or installment billing.

    New revenue from payment activity

    Another reason SaaS companies invest in embedded finance is because it opens a new revenue stream. Every time a customer makes a payment, the software provider can earn a share of the transaction. Over time, this can become a major contributor to the company’s bottom line, especially if the customer base is growing. 

    Software companies can create a new monetization stream without having to build or manage a payments infrastructure from scratch. Aurora provides the APIs, embeddable components, onboarding tools, and compliance support needed to operate in the background, while the software provider focuses on growth.

    Fully branded user experience

    Brand matters, especially for companies that have invested in their design and customer experience. With embedded payments, payment flows remain inside the software platform and reflect the Partner’s branding. This includes checkout pages, receipts, account management screens, and more. This continuity of experience reinforces our Partner’s brand and the trust they have built with their customers. 

    Aurora gives partners full control over the look and feel of their payment experience. The platform provides flexible APIs and easy to use interface components that can be styled to match their brand. There is no need to redirect to a third-party processor or use off-brand forms. This allows platforms to offer a seamless user experience while Aurora handles processing behind the scenes. 

    Where Aurora Fits In

    Aurora Payments provides embedded payment tools specifically for SaaS companies, software vendors, and vertical platforms that want to add financial functionality to strengthen their core software product. The ARISE platform offers everything a software development team needs to launch and scale quickly.

    Our focus on embedded payments

    Aurora’s platform includes features like ACH transfers, credit card acceptance, network tokenization, stored payment credentials, and recurring billing. These tools can be easily embedded through APIs, SDKs, and hosted components. Partners can create custom payment flows that match their use cases, whether they are running a fitness platform, a repair scheduling tool, or a field service CRM.

    Behind the scenes, Aurora manages transaction processing, risk and fraud protection, compliance, and settlement. The platform supports both card-present and card-not-present environments and is designed to work across multiple devices and locations.

    How we support ISVs

    Aurora works directly with independent software vendors (ISVs) to embed payments into their products. Every partner receives a dedicated solutions engineer, a full sandbox for testing, and access to Aurora’s U.S.-based support team.

    Most importantly, the onboarding process is a curated and fully guided experience that includes dedicated assistance with API integration, payment flow design, and merchant enrollment workflow. Aurora provides branded onboarding tools so ISVs can onboard their users under their own brand, with Aurora operating in the background.

    Aurora Partners also receive a dedicated Partner Success Manager. This Partner resource is focused on providing consulting expertise to ensure our Partners take full advantage of our decades of go-to-market experience to help Partners hit the performance metrics and milestones that are important to them.

    Once the platform is live, ISVs get access to reporting dashboards, revenue tracking, and performance metrics. Aurora’s team works with partners to optimize performance and support future growth.

    Embedded Payments in Action

    Aurora supports embedded payments across a wide range of industries. Here are a few examples of how the platform delivers value in real-world use cases:

    • Veterinary platforms can offer recurring wellness plans with automatic tokenized credit card billing, reducing missed payments and administrative work.
    • Jewelry software providers can enable high-ticket transactions through secure ACH transactions using VerifyPlus within their in-app payments to reduce credit card fees and minimize risk.
    • Transportation and logistics platforms can use text-to-pay and itemized invoicing for faster settlement and predictable cash flow across multiple locations.
    • Funeral home management software can provide branded, discreet ACH payment links for pre-need and at-need services.
    • Sporting goods and league management systems can automate team dues and equipment fees using stored payment methods that are automatically updated as lost, stolen, or expired cards are updated.

    Each of these examples shows how embedded payments not only simplify operations but also open up new revenue opportunities for the software provider.

    Fintech Integration

    Embedded finance is not just a trend. It is becoming a core expectation across industries. As users expect more from their software tools, platforms that offer integrated financial services will stand out.

    Aurora Payments gives SaaS companies and software platforms a fast, reliable way to embed payments into their product. With modern APIs, strong support, and a clear revenue model, Aurora helps platforms move from payment processing to full financial integration.

    If your platform is ready to grow through embedded payments, Aurora offers the tools and support to make it happen. Let’s go!

    Embedded Finance FAQs

    Q: What is embedded finance and how does it relate to small business software vendors (ISVs)?

    Embedded finance refers to integrating financial services (payments, lending, insurance, deposit/disbursement tools) directly into non‑financial software platforms, instead of requiring users to switch to separate financial providers. For ISVs or SMB‑software vendors, this means offering payment processing, recurring billing, or working capital tools inside their own applications, increasing value and customer stickiness.

    Q: How can embedded finance support transaction cost savings and recurring payments for SMBs?

    By embedding payment processing and automated billing within the platform itself, SMBs can reduce reliance on third‑party gateways, streamline subscription/recurring payment flows, and thereby lower overall transaction fees and administrative costs. Aurora’s ARISE platform supports ACH, credit cards and stored credentials and enables recurring billing inside the software environment.

    Q: What compliance and security features should software vendors look for when implementing embedded payments?

    Software vendors need to embed payments under a compliant payments infrastructure—they should look for features such as network tokenization, PCI DSS compliance, risk and fraud protection, proper settlement workflows, and adherence to embedded‑finance regulations (which include AML/KYC where relevant).

    Q: In what way does embedded finance improve cash‑flow management for SMBs?

    Embedded finance enables features like stored payment credentials, automatic renewals, working‑capital advances and faster settlement—all of which support consistent cash flow. For example, rather than chasing paperwork or sending invoices externally, an SMB platform embedded with finance tools can trigger billing and collections inside the user experience, improving speed and predictability.

    Q: What should SMB software vendors consider when choosing an embedded‑finance partner?

    Vendors should evaluate: 1. how quickly they can launch embedded payments with the partner; 2. the flexibility of APIs/SDKs and branding (so the payments flow remains inside their UI); 3. how the partner supports future services (lending, deposit/disbursement, insurance) to grow with the vendor; and 4. what revenue‑sharing model or monetization options exist.

  • How to Choose the Right Embedded Payments Partner for Your SaaS Business

    How to Choose the Right Embedded Payments Partner for Your SaaS Business

    Reading Time: 5 minutes

    Choosing embedded payment platform partners is one of the most strategic decisions a SaaS company can make. It influences product experience, revenue potential, and long-term scalability. Whether you’re a founder, product manager, or tech leader, this guide will help you cut through the noise and choose a partner that supports your growth.

    Highlights

    • Clear framework for evaluating embedded payments partners
    • Practical insights for SaaS leaders at every stage: startup, growth, and mature
    • Monetization opportunities with the right payments partner
    • Expert quote from Aurora’s Director of Partner Enablement
    • Real-world red flags to avoid

    Why Embedded Payments Matter for SaaS

    Embedded payments aren’t just a backend feature. They have a direct impact on how your users interact with your software. When payments are integrated into your platform, users benefit from a smoother, more intuitive experience. This reduces friction, helps with retention, and can elevate customer satisfaction.

    But there’s more to it than convenience. Embedded payments also offer the chance to unlock new revenue streams and improve the financial health of your business. By taking control of the payment flow, your SaaS platform can generate income from every transaction processed. It also improves your investor appeal, as recurring revenue streams and higher margins are often key metrics in valuation discussions.

    Build vs. Buy vs. Partner: What’s Right for You?

    SaaS leaders often debate whether to build their own payments infrastructure, buy from a processor, or embed payments through a partner. Each path has distinct trade-offs.

    Building in-house gives you complete control over the payment stack. You can customize every detail and tailor the user experience to fit your product. However, this comes with major overhead. You’ll need a dedicated team for compliance, ongoing maintenance, fraud prevention, and customer support. For large or well-funded companies, this route might be viable, but for most, it’s not realistic.

    Buying from a third-party processor can get you to market quickly, but you’ll sacrifice customization and brand control. Many processors also limit your ability to monetize payments directly, so the long-term upside may be small.

    Partnering with an embedded payments provider can offer the best of both worlds. You maintain control over the experience while benefiting from APIs, integration support, compliance, and go-to-market enablement. This route is ideal for SaaS businesses looking to scale without rebuilding core infrastructure.

    Evaluating Embedded Payment Platforms

    Not all partners are created equal. Choosing embedded payment platform providers requires more than comparing rates or tech specs. A good partner should align with your goals, support your teams, and deliver a strong experience for your merchants.

    Start by looking at integration capabilities. Are their APIs straightforward and well-documented? Do they offer direct support for your development team? A complex integration can slow your launch and distract your resources.

    Next, assess how well the provider works with your internal teams. Do they support your onboarding, support, and sales teams? Or are they just another vendor? A true partner should operate as an extension of your business.

    Also consider the end-user experience. Can your merchants get fast support when they need it? Do they have access to onboarding tools, reporting, and troubleshooting resources?

    Finally, think about the business opportunity. The right provider will offer transparent pricing, revenue sharing options, and help you turn payments into a growth engine.

    “As someone who works directly with software partners to drive adoption and performance, I’ve seen firsthand that the right embedded payments partner is a strategic growth lever. It’s not just about plugging in a payment solution. It’s about aligning with a partner that enhances your platform, supports your merchants, and helps you scale smarter. The right partner integrates seamlessly, accelerates onboarding, and acts as an extension of your team.” — Sherrie Bryant, Director of Partner Enablement at Aurora

    Bryant’s perspective reflects a few critical elements that SaaS companies should prioritize when evaluating providers. A partner-first approach means finding a payments provider who doesn’t operate in a silo but collaborates with your onboarding, support, and sales teams. This creates a unified experience across your business and delivers smoother merchant launches.

    Frictionless integration is another must-have. Look for providers offering simplified APIs and direct developer support. This can make or break your timeline when trying to go live. Fast, responsive communication and support for your technical team ensures integration issues don’t delay your growth.

    It’s about aligning with a partner that enhances your platform, supports your merchants, and helps you scale smarter.

    Sherrie Bryant – Director of Partner Enablement at Aurora

    The merchant experience is just as important. A quality payments partner extends your brand’s promise. That includes reliable uptime, self-service tools, and support that makes you look good when issues arise. A seamless merchant experience builds trust and keeps users on your platform longer.

    Most importantly, the right provider should help you grow through both revenue and retention. The best embedded payments strategy boosts your bottom line while making your product more valuable to customers.

    Matching the Right Partner to Your SaaS Stage

    Your needs will vary based on your company’s maturity. A startup launching an MVP will need different capabilities than an enterprise SaaS managing thousands of transactions daily.

    In the startup phase, simplicity is key. Look for partners that can offer quick deployment and hands-on integration help. You may not be focused on monetizing payments yet, so prioritize ease of use and low technical lift.

    During the growth stage, your payment needs become more complex. You’ll want APIs that support customization, onboarding support for scaling users, and merchant support that can scale with your customer base. This is also the time to start exploring how to turn payment processing into a revenue stream.

    If your SaaS business is mature, flexibility is a top priority. You may need multi-channel support, such as enabling both card-present and card-not-present payments. Your partner should offer advanced analytics, flexible pricing models, and deep integration options to help you fine-tune your payment offering.

    Monetizing Payments: Beyond the Basics

    Payments aren’t just a feature to check off your list. They can be a serious growth lever. The right partner will offer revenue-sharing options that let you capture a percentage of each transaction. This becomes a predictable, scalable income stream.

    You can also create new pricing tiers or product bundles by integrating premium payment features. Some platforms offer opportunities for upselling, such as instant payouts or custom invoicing, which can improve the overall lifetime value of your customers.

    And most importantly, embedding payments into your platform increases user stickiness. Once customers run payments through your system, it’s much harder for them to churn.

    Red Flags to Watch Out For

    There are plenty of providers promising fast, easy payment integration. But not all deliver.

    Watch for limited or poorly documented APIs. If your developers struggle during onboarding, that’s a sign the platform isn’t ready for prime time. Lack of direct support is another issue. If you can’t talk to a real person when things go wrong, that’s a risk.

    Opaque pricing is also a major concern. If you don’t have a clear view into costs, you could be leaving money on the table. Inflexible contracts and minimal compliance support are other warning signs that you’re not working with a true partner.

    A Real-World Example: ARISE in Action

    Consider the example of a home services SaaS platform, representative of the kinds of ISV partners Aurora supports. This illustrative scenario demonstrates the type of impact ARISE can have. In this case, the platform needed both card-present and card-not-present payment capabilities, along with a way to streamline onboarding for new merchants.

    By embedding Aurora’s ARISE platform, they would be able to offer a fully integrated, branded onboarding experience. They could also embed payments directly into their user flow and benefit from revenue-sharing that turns payment processing into a new source of income. With support from Aurora’s partner enablement team, including technical assistance and launch coordination, the rollout would be efficient and merchant experience seamless.

    While this is a composite example, it reflects real results Aurora customers can expect, including faster onboarding, stronger monetization potential, and smoother merchant support, all through a strategic embedded payments partnership.

    Next Steps

    Choosing embedded payment platform providers is a decision that will shape your product, your customer experience, and your revenue strategy. Take the time to evaluate your options carefully and match your needs to a partner that supports your long-term goals.

    Aurora’s ARISE platform is built specifically for SaaS platforms that want to scale faster, monetize payments, and deliver great experiences to their users. If your current payments setup isn’t helping you grow, it’s time to reevaluate.

    Ready to level up your embedded payments strategy? Connect with Aurora and see how ARISE can transform the way your platform handles payments.